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___________.

Answer 1

Answer:

Laura's lawsuit against Bolivia will most likely not prevail because of the Act of state doctrine.

Explanation:

According to this Act, a sovereign state (United States) must respect the independence of any other sovereign state (Bolivia) and, as a result, all the laws and regulations that such sovereign state sets forth. If no US dollars are allowed to enter Bolivia, US citizens traveling to such country have to change US dollars for "Bolivianos", which is the currency used in Bolivia.

In addition, a court (a US court in this case) is not entitled to hear a case where a foreign issue is involved (the fact of exchanging foreign currency). This case cannot be heard nor decided by a US court because that would interfere with the US foreign policy (with Bolivia in this case).