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The President recognized the government of Country X after a disputed revolution. Without submitting anything to the Senate, the President signed an executive agreement with Country X settling claims between U.S. companies and Country X's state-owned bank. The agreement directs federal courts to dismiss pending claims against the bank and transfer those claims to an international tribunal. A federal statute enacted two years earlier provides that "claims against foreign state-owned banks arising from confiscated property may proceed in federal court notwithstanding any executive agreement." A state statute separately bars Country X's state-owned bank from doing business in the state because the state does not recognize Country X's new government.
A U.S. company with a pending federal claim and the state both challenge the President's actions.
Analyze the President's recognition power, executive-agreement authority, and conflicts with federal and state law.