Which of the Following Is Not an Exception to the Act

question 23

Multiple Choice

Which of the following is not an exception to the act of state doctrine?

• A) A sovereign waives its right to raise the act of state defense.
• B) A foreign sovereign contracts to sell a service.
• C) A foreign sovereign's decides to grant a license to export a natural resource.
• D) There is a claim to property based on the assertion that a foreign state confiscated the property in violation of the principles of international law.

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Definitions:

Subchapter S

A designation of corporations in the United States that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.

Federal Income Tax

Tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Controlling Shareholders

Individuals or entities that own a majority of a corporation's shares, giving them significant influence over its operations.

Close Corporation

A corporation with few shareholders generally having a close personal relationship to each other and participating in the management of the business.