Question

The government of Bolivia passes a law stating that no U.S. dollars are allowed to enter the country. Americans traveling to Bolivia therefore may not bring dollars with them, nor may anyone else bring dollars into the country. All dollars have to be exchanged for the Bolivian domestic currency at any border crossing, airport, or train station. Laura, a U.S. citizen, files a lawsuit against Bolivia in a U.S. court challenging the legality of this law. Laura will most likely:

a. Prevail because the law clearly violates the U.S. Constitution.
b. Not prevail because of the act of state doctrine.
c. Prevail because of the doctrine of comity.
d. Not prevail because Laura has sovereign immunity.

Answer 1

b. Not prevail because of the act of state doctrine.

Step-by-step explanation:

Act of state doctrine is a principle that states that a law established in one country is sovereign in the territory of that country and the governments of other countries must respect that law whenever one of its citizens is in that territory. In the case shown in the above question, the United States court will not judge the Bolivian law, because in Bolivian territory that law is sovereign. Based on this, we can say that Laura is unlikely to succeed in contesting Bolivian law because of the act of state doctrine.