Biology Forums - Study Force

Act of State Doctrine. W. S. Kirkpatrick & Co learned that the Republic of Nigeria was interested in contracting for the construction and equipping of a medical center in Nigeria. Kirk-patrick, with the aid of a Nigerian citizen, secured the contract as a result of bribing Nigerian officials. Nigerian law prohibits both the payment and the receipt of bribes in connection with the awarding of government contracts, and the U.S. Foreign Corrupt Practices Act of 1977 expressly prohibits U.S. firms and their agents from bribing foreign officials to secure favorable contracts. Environmental Tectonics Corp, International (ETC), an unsuccessful bidder for the contract, learned of the bribery and sued Kirkpatrick in a federal district court for damages. The district court granted summary judgment for Kirkpatrick on the ground that resolution of the case in favor of ETC would require imputing to foreign officials an unlawful motivation (the obtaining of bribes) and accordingly might embarrass the Nigerian government or interfere with the conduct of U.S. foreign policy. Was the district court correct in assuming that the act of state doctrine barred ETC's action against Kirkpatrick? What should happen on appeal? Discuss fully.

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