1. Nigeria, an African nation, entered into many contracts to buy cement from companies in the USA. Nigeria overestimated the country's needs and substantially overbought cement. The country's docks and harbors became clogged with ships waiting to unload. Unable to accept delivery of the cement it had bought, Nigeria repudiated many of its contracts including one with Texas Trading. Texas Trading sued Nigeria in US District Court to recover damages for breach of contract.
a. What does the doctrine of sovereign immunity provide?
b. Foreign countries are not immune to lawsuits in the US under Foreign Sovereign Immunities Act (FSIA) if they have explicitly waived their immunity or if the commercial activity by the foreign country was carried on in the US or has a direct effect on the US. This is called the commercial activity exception. How does Nigeria's conduct fit within this exception?
c. Has Nigeria acted ethically in asserting that the doctrine of sovereign immunity
relieves it of its contract liability?
d. Which party wins and why?
2. In today's online environment, a recurring challenge for businesses is how to deal with cyber gripers—those who complain in cyberspace about corporate products, services, or activities. In some cases, they have maliciously harmed the reputation of a competitor.
a. Can businesses do anything to ward off these cyber-attacks on their reputations
b. How might cyber griping sites help to improve the ethical performance of the businesses they criticize?
c. Can business owners do anything to prevent the use of their marks in "sucks" sites?
3. How can business leaders encourage their companies to act ethically?
4. What are three reasons that unethical business behavior happens in a workplace.
5. In negotiating a business deal, is "strategic misrepresentation" permissible? Do you haveto disclose everything? 6. Why would a corporation prefer to be seen as ethical?
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