Law
State Immunity in Commercial Arbitration
Quick fact
Under the restrictive theory of state immunity, states are immune for sovereign acts but not for commercial activities. The US Foreign Sovereign Immunities Act codifies this, and also contains an arbitration exception that allows enforcement of arbitration agreements made with foreign states.
Why this is interesting
A state can sign a commercial contract, but if it defaults, can you sue it in arbitration? Surprisingly, the answer is not always 'yes'—and that's the puzzle.