Questions are from "International Business Law- Text, Cases and Readings" at pages 125 to 126. 

1 Cue Co, a large multinational enterprise incorporated and headquartered in State Q, owns and operates a banana plantation in Chiquitaland, a small and less developed State. Rebels, with whom the Chiquitaland government has been engaged in a civil war for several years, made a raid on the plantation, destroying most of its banana plants and all of its buildings and killing the manager, a citizen of State Q.

State Q and Chiquitaland State are parties to an Arbitration Treaty, and they agree to submit the dispute to arbitration. Is Chiquitaland State liable for the injuries to Cue Co's plantation and for the death of the manager? Discuss.

4 The Big Co is incorporated and headquartered in State K, but the majority of shares are owned by shareholders who are nationals of State M. In 1980, the Big Co obtained an oil concession in Ruraltania State that was valid for 40 years. The concession contained a "stabilisation" clause providing that the concession could not be altered except by the consent of both parties. To exploit the concession, Big Co set up a local subsidiary, Little Co, that was incorporated in Ruraltania State but wholly owned by Big Co.

Two years ago, a major political change occurred in Ruraltania State. A new government terminated all foreign-owned concessions, including that of Big Co, but excluded one Japanese offshore oil concession. By decree, the new Minister for Oil was authorised to fix the compensation - if any - due to foreign companies. The ordinary courts were abolished and replaced by revolutionary tribunals.

The manager of Little Co, himself a national of State K, criticised the new policy in a television interview, and the next day a group of university students took over Little Co's offices, burning and destroying files and other property and injuring the manager. It took nearly two weeks for the Ruraltanian State authorities to evict the students.

State K and Ruraltania State are parties to an Arbitration Treaty, and they agree to submit the dispute to arbitration. State K files a claim for the following:

(a) The reinstatement of the concession; or

(b) Compensation to cover the full cost of all assets and installations, lost profits for the next 20 years, interest on the above effective from the date when the concession was terminated; and, in either case,Tutorial 02 of 2021

(c) Compensation to cover the property damages to Little Co, and the injuries suffered by the manager. How should the arbitration tribunal rule? Discuss.

5 In the preceding question, assume that State K decides not to assert any claims on behalf of either Big Co or Little Co. May State M do so? Discuss.

8 A Crocodonian business firm chartered an airplane owned by the State of the Republic of Crocodonia to fly cargo to State U. The cargo was a load of crocodile skins that are legal to own and sell in State of the Republic of Crocodonia, but that are considered contraband in State U. The business firm, knowing this, mislabelled the cargo as cowhides. When the plane landed in State U, State U's Contraband Enforcement Agency seized both the plane and its cargo. The cargo was destroyed and the plane was sold in accordance with a State U anti-racketeering statute.

The government of State of the Republic of Crocodonia was incensed. It sent a diplomatic message to State U protesting that its national honour had been sullied by State U's actions. The State of the Republic of Crocodonia and State U are parties to an Arbitration Treaty and they agree to submit the dispute to arbitration. The State of the Republic of Crocodonia seeks compensation for the airplane and, on behalf of the Crocodonian business firm, compensation for the destroyed cargo. What will the arbitration tribunal decide? Discuss