AIW 303 International Business Law Tutorial 1 Model Answer Imputable Acts and Nonimputable Acts Question 1. (1) Summary of case in Question 1. (2) Concept to be used: Imputability, Terrorism (3) Discuss the case: Possible arguments may include that Chiquitaland is not liable for the damages to Cue Co.’s plantation or for the death of the manager. A theory known as the doctrine of imputability says that a state is only responsible for actions that are imputable (attributable) to it. This includes (1) acts within the scope of officials’ authority and (2) acts outside their scope of authority if the state provided the means or facilities to accomplish the act. States are not responsible for the acts of private persons, acts of officials of other states or international organizations, or acts of insurrectionaries within their own territories. (4) Classical Case: Sandline International Inc. v. Papua New Guinea (5) Conclusion – What is your stand? Expropriations Question 4. (1) Summary of case in Question 4. (2) Concept to be used: Imputability, Terrorism (3) Discuss the case: This is a case of expropriation post the major political change in Ruraltania. Expropriation or nationalization is the state’s taking or deprivation of the property of foreigners. The right of states to expropriate foreign property is universally recognized. Expropriation is regarded as proper so long as it is done for a legitimate public purpose and the state pays prompt, adequate, and effective compensation. By “adequate” compensation is meant the value of the undertaking at the moment of dispossession, plus interest to the day of judgment. Students may argue that the concession may not be reinstated. Also, Ruraltania is not liable to compensate to cover the full cost of all assets and installations or lost profits for the next 20 years. However, Ruraltania is liable to compensate to cover the property damages to Little Co. and the injuries suffered by the manager.

(4) Classical Case: Acsyngo v. Compagnie De Saint-Gobain (5) Conclusion – What is your stand?