When the International Association of Machinists brought a suit claiming that an agreement by member states of the Organization of Petroleum Exporting Countries (OPEC) to increase the price of crude oil through taxes and price-setting was in violation of Sections 1 and 2 of the Act, the federal district court dismissed the case for lack of jurisdiction based on the
Doctrine.

Question

Quizplus · Accepted Answer

The Doctrine of act-of-state holds that the court should not interfere with the official actions of foreign governments. In this case, the agreement by OPEC member states to increase the price of crude oil through taxes and price-setting was an official action of foreign governments and therefore falls under the act-of-state Doctrine. The case was dismissed for lack of jurisdiction based on this Doctrine. The relevant antitrust law in this case is the Sherman Act.

When the International Association of Machinists Brought a Suit Claiming