Venezuela seizes the assets of World Oil, Inc., a U.S. firm. World Oil's recovery from Venezuela in a U.S. court may be prevented by

Question

Quizplus · Accepted Answer

The most likely reason why World Oil, Inc. may not be able to recover its assets from Venezuela in a U.S. court is the act of state doctrine. This legal principle holds that U.S. courts should not interfere with the official acts of foreign governments taken within their own territories. Since Venezuela has seized the assets of World Oil, Inc., this can be seen as an official act of the government, and the act of state doctrine may prevent a U.S. court from overturning or nullifying this action. The World Trade Organization and the Central American Free Trade Agreement are unlikely to be relevant in this case, as they generally deal with international trade and investment disputes between countries rather than claims by foreign companies against a particular government. The principle of comity, which is the recognition by one country of another country's laws and decisions, may be relevant in some cases, but it is unlikely to have much effect if the act of state doctrine applies.

Venezuela Seizes the Assets of World Oil, Inc