Before the 1979 Iranian uprising, Lumax had a plant in Iran. The Iranian government allowed Lumax to send products and profits out of the country. The new government confiscated Lumax's plant. The company sued the government of Iran in a U.S. courts: the forum choice of the parties in case of any dispute. A U.S. court will likely hold:

Question

Quizplus · Accepted Answer

The Foreign Sovereign Immunities Act (FSIA) provides the framework for suing foreign governments in U.S. courts. The FSIA allows suits against foreign governments for specific types of claims, one of which includes expropriation of property. Therefore, Lumax may sue the government of Iran under the FSIA for the expropriation of its plant. Options (A) and (D) are not correct as they do not consider the legal framework of the FSIA or international nationalization laws. Option (B) is not correct as it suggests that the dispute should be resolved in a neutral forum, whereas Lumax has already chosen a forum in the U.S. Option (E) is not correct as it suggests that Lumax can attach assets held by the Iranian government in the U.S., which may not be possible under FSIA.

Before the 1979 Iranian Uprising, Lumax Had a Plant in Iran