Question

Fact Pattern 52-1
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 certain 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 52-1. 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.

Answer

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