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Business English Exercises
 

The Act of State Doctrine

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Home > Teaching Business English > Business English Lessons, Advanced Level # 386
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The Act of State Doctrine, a rule of law so old its roots may be traced back to the 17th Century, entered into American jurisprudence in the classic case Underhill v. Hernandez.

Correct answer: (c) rule

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In an 1892 revolution, General Hernandez expelled the existing Venezuelan government and took control of Ciudad Bolivar, where plaintiff Underhill lived and ran a waterworks system for the city.

Correct answer: (a) expelled

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Underhill, an American citizen, repeatedly applied to Hernandez for an exit passport, but his requests were refused, and Underhill was forced to stay in Bolivar and run the waterworks.

Correct answer: (a) applied

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Hernandez finally relented and allowed Underhill to return to the United States where he instituted an action to recover for his detention in Venezuela.

Correct answer: (b) relented

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In finding for the defendant, a New York Court determined that Hernandez had acted as a military commander, and through this position he had imputed governmental authority.

Correct answer: (d) imputed

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The Court reasoned that every sovereign state is bound to respect the independence of every other sovereign state, and the courts of one country will not sit in judgment on the acts of the government of another, done within its own territory.

Correct answer: (c) sit

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In later decisions, the courts expounded on the principals and policies underlying the Act of State Doctrine.

Correct answer: (c) expounded

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Banco Nacional de Cuba v. Sabbatino stated that although the Doctrine is not implicit in the Constitution, it does have constitutional underpinnings.

Correct answer: (d) underpinnings

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The court acknowledged an implied separation of powers in Act of State questions, reasoning that sensitive areas of foreign policy were better left to the executive branch.

Correct answer: (b) left

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After Sabbatino, Congress moved swiftly to curtail the act of state doctrine, but the judiciary has undermined the effort by narrowly interpreting the amendment and continuing to apply the doctrine wherever it does not conflict with a constrained reading of the Hickenlooper Amendment.

Correct answer: (d) curtail

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