When a state acts in its sovereign capacity,______.
A) it is immune from federal antitrust scrutiny
B) it can legalize bribery
C) it can force defendants to civil suits to enter a plea of nolo contendere
D) it is liable for triple damages
E) it has the right to forgive corporations for violations of the Clayton Act

Question

Quizplus · Accepted Answer

When a state acts in its sovereign capacity, it is immune from federal antitrust scrutiny. In a 1943 case known as Parker v. Brown, the Supreme Court created a state action exemption to the Sherman Act. This state action exemption, referred to as the Parker v. Brown doctrine, is based on the reasoning that the Sherman Act does not apply to state government.

When a State Acts in Its Sovereign Capacity,______