Foreign Corrupt Practices Act

Question 1

Which of the following actions is illegal under the Foreign Corrupt Practices Act?
a. Paying a license fee to a government to conduct business in the country
b. Paying a documentation fee to a government agency for filing corporate documentation
c. Paying an expedited fee to a customs agent to ensure that goods will move quickly through the customs process
d. Paying a fee to a governmental agency designated for police and fire protection within a city limit

Answer 1

c. Paying an expedited fee to a customs agent to ensure that goods will move quickly through the customs process

Question 2

Which of the following is not subject to the FCPA?
a. A U.S. corporation
b. An Asian corporation with offices throughout the world, including in the U.S.
C. A European corporation with offices only in Europe
d. An employee of a U.S. corporation

Answer 2

C. A European corporation with offices only in Europe

Question 3

Which of the following actions of Sales, Inc., a U.S. based corporation, appears
to be illegal with NO affirmative defense available under the FCPA?

a. Sales, Inc. pays a fee to the government of a foreign country to obtain a sales and distribution license in the country
b. Sales, Inc. pays a commission to the chief customs officer of the foreign country based on the amount of gross sales each month
c. Sales, Inc. pays a fee that is authorized under the laws of the country, to the chief customs official of the foreign country for consulting with the company on compliance with the customs laws
d. Sales, Inc. pays a transportation tax to a foreign government official for the purpose of transporting its product throughout the country

Answer 3

b. Sales, Inc. pays a commission to the chief customs officer of the foreign country based on the amount of gross sales each month