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

question 33

Multiple Choice

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

• A)the actions of foreign nations "taken in connection with commercial activities" are exempt from the jurisdiction of U.S.courts.
• B)the bankruptcy proceedings in the Mexican court appear to be fundamentally fair and not in violation of U.S.public policy.
• C)the courts of one country will not review the validity of acts by the courts of another country within their own jurisdiction.
• D)the nations of the world are constitutionally bound to honor the actions of each others' courts.

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