If a dispute arises over a lease involving the Australian government's for-profit tourist information center in the U.S., can the landlord sue the government?

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The correct answer highlights the principle of sovereign immunity, particularly how it can be waived when a government engages in commercial activities. Sovereign immunity generally protects a government from being sued without its consent, but there are exceptions to this rule.

When a government operates in a capacity that is akin to that of a private enterprise, such as running a for-profit tourist information center, it may be considered to have waived its immunity for matters related to that business activity. This allows for the possibility of litigation, as the government would be treated similarly to any private entity engaged in commerce.

In this context, the landlord could potentially sue the Australian government because the lease dispute arises from a commercial transaction, specifically the lease associated with the for-profit activity of the tourist information center. Thus, the government could be held accountable under the contracts or any other agreements made in the course of that commercial operation.

The other options focus solely on aspects of sovereignty or jurisdiction that do not directly pertain to the issue at hand, which is the nature of the government's activities in a commercial context. Therefore, the exploitation of the commercial activity exception to sovereign immunity is the pivotal reasoning for the landlord's right to sue.

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