Fact Pattern
Sociedad Guarantia (SG),a Mexican firm,borrows $1 million from Tri-national Bank,a U.S.firm.Later,SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of payments on the loan.Tri-national files a suit against SG in a U.S.court,arguing that the funds do not belong to SG.
-Refer to Fact Pattern 8-1B.The U.S.court in Tri-national's suit is most likely to apply the principle of comity because

Question

Fact Pattern 
Sociedad Guarantia (SG),a Mexican firm,borrows $1 million from Tri-national Bank,a U.S.firm.Later,SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of payments on the loan.Tri-national files a suit against SG in a U.S.court,arguing that the funds do not belong to SG.
-Refer to Fact Pattern 8-1B.The U.S.court in Tri-national's suit is most likely to apply the principle of comity because

Quizplus · Accepted Answer

The principle of comity refers to the practice of courts in one jurisdiction of showing respect for the laws and judicial decisions of another jurisdiction. In this case, the U.S. court is likely to apply the principle of comity because the bankruptcy proceedings in the Mexican court appear to be fundamentally fair and not in violation of U.S. public policy. Therefore, the U.S. court may defer to the Mexican court's decision regarding the reimbursement of payments on the loan. Option A is incorrect because foreign nations are not exempt from the jurisdiction of U.S. courts in all circumstances. Option C is incorrect because the courts of one country may review the validity of acts by the courts of another country if they are inconsistent with their own jurisdiction. Option D is incorrect because there is no such constitutional obligation among nations to honor each other's court actions.

Fact Pattern Sociedad Guarantia (SG),a Mexican Firm,borrows $1 Million from Tri-National Bank,a