On its own, no your camera can't avoid it. It doesn't have the dynamic light range that our own eyeballs do. Even if you aren't shooting in a "harsh" sunlit environment, you may still find your shots blown out because the range is still too much. So if you only have your camera, you have to decide what in your picture is worth the most.
However there are "tools" that exist to help you out. One is the Graduated Nuetral Density Filter. You will also see standard Neutral Density filters, but those wouldn't help you. The "graduated" version has a graduation of the filter from the outer edge (where the sky would be) to the center of the filter. This way you can let less light come in from the top part of your picture, and let the proper amount of light in from the rest.
The other option is a dedicated flash unit. Nikon calls theirs Speedlights, Canon Speedlite - original I know. Slap one on your camera, and you will then be able to expose for the sun, and STILL fire off enough flash to illuminate your imediate subject.