OBB Personenverkehr (OBB), the Austrian state-owned railway, carries about 235 million passengers a year on routes within

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OBB Personenverkehr (OBB), the Austrian state-owned railway, carries about 235 million passengers a year on routes within wholly owned by OBB Holding Group, which in turn, is wholly owned by the Austrian Federal Ministry of Transport, Innovation, and Technology. It is one of 30 railways throughout Europe that comprise the Eurail Group, which is in charge of the Eurail train pass program. Eurail passes are available only to non-Europeans, who can buy them directly from the Eurail Group or through travel agents worldwide. Carol Sachs, a California resident, bought a Eurail pass over the Internet from a Massachusetts travel agent. She then travelled to Europe and used the pass when boarding a train operated by OBB. While in a train station attempting to board a train in Austria, Sachs fell on the tracks and sustained serious personal injury. She sued OBB for negligence and other claims in federal court in the United States. OBB claimed that Sachs’ suit was barred by the FSIA. Sachs countered that her suit fell under the commercial activity exception. Eventually, the case was appealed to the United States Supreme Court. What do you think the Supreme Court decided? Why?

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The Legal And Ethical Environment Of Business

ISBN: 9781454893028

2nd Edition

Authors: Gerald R. Ferrera, Mystica M. Alexander, William P. Wiggins, Cheryl Kirschner, Jonathan J. Darrow

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