The Act of State Doctrine, Foreign Sovereign Immunities Act, and Definition of Security

Business Law Briefing Paper
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Briefing Paper 1: Critical Legal Thinking
What does the act of state doctrine provide? Explain. Did the Cuban govt. act ethically when it expropriated the Glens’ property? Did the Club Med act morally when it entered into a joint venture with the Cuban govt. to develop the property that had been expropriated from the Glens? What is the expropriation of property by a government?
The act of state doctrine provides the sovereignty of other countries; every state must respect and adhere to the independence of another state and must not act or do anything that contradicts this sovereignty. The Cuban government had acted unethically expropriating the Glen’s property as it had not used it for public benefit or interest. Instead, it entered into a joint venture with Club Med to develop the property for business purposes that were exactly being done by the Glens. Also, Club Med did not act ethically when it entered into a joint venture with the Cuban government to develop the property that had been expropriated from the Glens because it was diverting the original interests that the property had been expropriated for (Brenkert, 2010). It can also be assumed Club Med was ethically right because the profits gained from the joint venture with the government would be used for the benefit of the masses. Expropriation by a government refers to the act of forceful acquiring of a private property to be used for the public profit (Murphy, 2002).
Briefing Paper 2: Law Case with AnswersBrief the facts of the case and FSIA
The Foreign Sovereign Immunities Act (FSIA) applies to lawsuits about foreign nations/states. A foreign state is defined according to these three conditions
A foreign nation
A political entity of a foreign nation
An agency or body of a foreign nation
Argentina is a foreign state by its statue of sovereignty while Banco Central is an organ of a foreign state. These conditions meant that FSIA could be applied to this suit.
According to the agreement in the issuance of the bonds, they were to be paid after the maturity period through the transfers in Frankfurt, Zurich, London and New York. Argentina failed to pay after the scheduled period that presents a case of breach of contract and is a ‘commercial activity’ which can be filed in a US court following the FSIA (Murphy, 2002).
Briefing Paper 3: Critical Legal Thinking Cases
Piercing the Corporate Veil
The GSI Inc. formed by Jerry Drizin would be in typical cases be considered a separate legal entity and loans accrued by the Incorporation would not affect personal assets of Jerry Drizin. It was unethical for Jerry Drizin to convince Northeast Iowa Ethanol, LLC to transfer its funds to GSI, knowing that he was aware of the situation they were in which was formed after the advent of the situation faced by Northeast Iowa Ethanol, LLC (Brenkert, 2010). This would make Jerry Drizin liable to defaulted agreements by GSI. Thus, the doctrine of ‘Piercing the Corporate Veil’ would apply.
Definition of Security
Security refers to anything submitted as a surety for the repayment of the loan. It would usually represen...