International Law Dispute Settlement (DB-2) Research Paper

International Law Dispute Settlement (DB-2) - Research Paper Example hill (2011), immunity against suit means that the party involved is not liable and it is impossible to use it, and it should not even be bothered to participate in the lawsuit. In this case, MBI cannot sue Country D for failing to pay for the military equipment supplied to them. However, there are cases where the supplier cannot be held liable for any defective military equipment, and thus, may demand full payment for the equipment supplied. Rakowsky (2005) states that Feres-Stencel doctrine can be used in cases where the suppliers of military equipment supply products with design defects, which have been approved by the government. He argues that permitting liability against contractors (in this case, the multinational corporation, MBI) in such a situation can subvert the Feres-Stencel doctrine. This is because the military suppliers can simply pass the associated expenditures or costs through to the government. Making contractors responsible for the designs accepted by the government would put the judiciary in a state in which they will be forced to make military decisions (Rakowsky, 2005). Thus, the Ninth Circuit has created its own way of determining contractor immunity. The supplier can be immune if he is capable of proving that the country in question approved the â€Å"precise specifications for the allegedly defective military equipment† (Rakowsky, 2005). Thus, if MBI is able to prove that Country D approved of the military equipment, the supplier is capable of suing Country D in Country C. It is legal and ethical for MBI to make such a move because the law provides the immunity of suppliers who deal with military equipment. A number of ethical issues arise such as why Country D refused to pay for the suppliers offered to them by MBI’s subsidiary. Other ethical issues include if the move made by MBI would hold any ground. It is important to note that performing business globally presents its unique challenges such as ethical challenges. This is common