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Question
In: Other
Robco, Inc., was a Florida
Should the Foreign Sovereign Immunities Act (FSIA) preclude this lawsuit? Why or why not?
Robco, Inc., was a Florida arms dealer. The armed forces of Honduras contracted to purchase weapons from Robco over a six-year period. After the government was replaced and a democracy installed, the Honduran government sought to reduce the size of its military, and its relationship with Robco deteriorated. Honduras refused to honor the contract and purchase the inventory of arms, which Robco could sell only at a much lower price. Robco filed a suit in a federal district court in the United States to recover damages for this breach of contract by the government of Honduras. Using the information presented in the chapter, answer the above question.
Solutions
Expert Solution
Because the armed forces of Honduras contracted to purchase weapons from a U.S. company (Robco), this would fall under the commercial activity exception to the FSIA. The sales contract was an action taken in connection with a commercial activity carried on in the United States, and the sale has a direct effect in the United States. Therefore, the FSIA would not bar this lawsuit.
Raffay answered 3 years agoRelated Solutions
Robco, Inc., was a Florida
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Robco, Inc., was a Florida
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•All sales are on account. Sixty percent of customer accounts
are collected in the month of sale; 35 percent are collected in the
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Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling...
Mary and Kay, Inc., a distributor of cosmetics throughout
Florida, is in the process of assembling a cash budget for the
first quarter of 20x1. The following information has been extracted
from the company’s accounting records:
•All sales are on account. Sixty percent of customer accounts
are collected in the month of sale; 35 percent are collected in the
following month. Uncollectibles amounting to 5 percent of sales are
anticipated, and management believes that only 20 percent of the
accounts...
Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling...
Mary and Kay, Inc., a distributor of cosmetics throughout
Florida, is in the process of assembling a cash budget for the
first quarter of 20x1. The following information has been extracted
from the company’s accounting records:
All sales are on account. Sixty percent of customer accounts
are collected in the month of sale; 30 percent are collected in the
following month. Uncollectibles amounting to 10 percent of sales
are anticipated, and management believes that only 20 percent of
the accounts...
Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling...
Mary and Kay, Inc., a distributor of cosmetics throughout
Florida, is in the process of assembling a cash budget for the
first quarter of 20x1. The following information has been extracted
from the company’s accounting records:
All sales are on account. Sixty percent of customer accounts are
collected in the month of sale; 30 percent are collected in the
following month. Uncollectibles amounting to 10 percent of sales
are anticipated, and management believes that only 20 percent of
the accounts...
Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling...
Mary and Kay, Inc., a distributor of cosmetics throughout
Florida, is in the process of assembling a cash budget for the
first quarter of 20x1. The following information has been extracted
from the company’s accounting records:
All sales are on account. Sixty percent of customer accounts are
collected in the month of sale; 30 percent are collected in the
following month. Uncollectibles amounting to 10 percent of sales
are anticipated, and management believes that only 20 percent of
the accounts...
Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling...
Mary and Kay, Inc., a distributor of cosmetics throughout
Florida, is in the process of assembling a cash budget for the
first quarter of 20x1. The following information has been extracted
from the company’s accounting records:
All sales are on account. Sixty percent of customer accounts are
collected in the month of sale; 35 percent are collected in the
following month. Uncollectibles amounting to 5 percent of sales are
anticipated, and management believes that only 20 percent of the
accounts...
Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling...
Mary and Kay, Inc., a distributor of cosmetics throughout
Florida, is in the process of assembling a cash budget for the
first quarter of 20x1. The following information has been extracted
from the company’s accounting records:
All sales are on account. Sixty percent of customer accounts are
collected in the month of sale; 35 percent are collected in the
following month. Uncollectibles amounting to 5 percent of sales are
anticipated, and management believes that only 20 percent of the
accounts...
Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling...
Mary and Kay, Inc., a distributor of cosmetics throughout
Florida, is in the process of assembling a cash budget for the
first quarter of 20x1. The following information has been extracted
from the company’s accounting records: •All sales are on account.
Sixty percent of customer accounts are collected in the month of
sale; 30 percent are collected in the following month.
Uncollectibles amounting to 10 percent of sales are anticipated,
and management believes that only 20 percent of the accounts...
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