Question

Quarter Inc. is an Italian company that set up its ventures in the United States. It sells watches—designed and manufactured in Italy—in the United States. For the past few months, Quarter Inc. has not been doing well and has not paid rent for its establishment. According to the Foreign Sovereign Immunities Act (FSIA), which of the following most likely applies to Quarter Inc.?Quarter Inc. can be legally charged because sovereign immunity does not apply to foreign entities engaged in a commercial enterprise on U.S. soil.Quarter Inc. can be legally charged only if Italy recognizes U.S. laws and defers to themunder the concept of comity.Quarter Inc. cannot be legally charged because as a foreign entity, it cannot be tried in aU.S. court of law.Quarter Inc. cannot be legally charged because as a foreign entity, it is exempt from prosecution based on sovereign immunity

Answer 1

Answer: D

Explanation: Quarter Inc. cannot be legally charged because as a foreign entity, it is exempt from prosecution based on sovereign immunity. Once the defendant establishes that it is a foreign state, for the lawsuit to proceed, the plaintiff must prove that one of the Act's exceptions to immunity apply.