Question

You are a manager at Trek Bicycle Company in a USA company. The company has started

doing business in a foreign country. Your boss asked what the trek company can do that would not
violate the United States Foreign Corrupt Practices Act?

a. A payment to a foreign government official to influence a customs official
b. A payment to a customs official to clear legitimate merchandise
c. A bribe paid by a us firm operating in a foreign country that permits bribes to be paid
d. A bribe paid by Foreign firms operating in US territories
e. A payment by us firm operating in foreign country to an executive of another foreign company to influence that company into buying the products of the US company

Answer 1

A payment to a customs official to clear legitimate merchandise would not violate the United States Foreign Corrupt Practices Act (FCPA).

Step-by-step explanation:

The United States Foreign Corrupt Practices Act (FCPA) prohibits certain actions by US companies when doing business in foreign countries. Among the options given, a payment to a foreign government official to influence a customs official, a bribe paid by a US firm operating in a foreign country that permits bribes to be paid, and a payment by a US firm operating in a foreign country to an executive of another foreign company to influence that company into buying the products of the US company would all violate the FCPA. The only option that would not violate the FCPA is a payment to a customs official to clear legitimate merchandise, as long as it is not a bribe.