Who Has Juridiction? Theodore Papaila, an American employee of Uniden
America Corporation (UAC), a subsidiary of a Japanese company, sued UAC for racial
discrimination. He claimed UAC treated 16 Japanese employees differently by giving
them higher base salaries, fringe benefits, and job protection. Two laws apply to this
case. U.S. Code statute 42 U.S.C. $2000e-2(a)(1) reads: "(a) Employer practices: It shall
be an unlawful employment practice for an employer to fail or refuse to hire or to
discharge any individual, or otherwise to discriminate against any individual with
respect to his compensation, terms, conditions, or privileges of employment, because
of such individual's race, color, religion, sex, or national origin." The Friendship,
Commerce, and Navigation Treaty and Protocol Between the United States and Japan,
4 U.S.T. 2063 reads: "Nationals and companies of either Party shall be permitted to
engage, within the territories of the other Party, accountants and other technical
experts, executive personnel, attorneys, agents and other specialists of their choice."
Source: Papaila v. Uniden America Corp., 51 F3d 54 (5th Cir. 1995)
Practice Which law should apply to this case? What are the ethical implications?