Honduras contracted to purchase weapons from robco

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Reference no: EM132178619

Robco, Inc. v. Honduras.

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 by purchasing 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.

TRUE OR FALSE WITH EXPLANATION:

1. Robco’s lawsuit against the government of Honduras will be permitted to proceed in federal district court, because Honduras is not exempt from jurisdiction in U.S. courts under the Foreign Sovereign Immunities Act.

2. Robco’s lawsuit against Honduras will likely be dismissed, because permitting Robco to sue Honduras violated the act of state doctrine under which the courts of one country will not question the validity of public acts committed by a foreign government.

3. If the new Honduras government enacted a law making it illegal to purchase weapons from foreign arms dealers, the federal district court would likely dismiss Robco’s lawsuit against Honduras.

4. Assuming the federal district court hears the case and awards damages to Robco, but the government of Honduras has no assets in the United States that can be used to satisfy the judgment, Robco would be unable to obtain payment of the judgment against Honduras.

5. If the government of Honduras violated the human rights of its citizens, Robco might be found liable for those violations under the Alien Tort Claims Act, if it was aware of those violations and could have taken steps to prevent those violations.

Reference no: EM132178619

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