Question

To obtain a contract with the Chinese government, Digby Engineering Corporation, a U.S. firm, gives a Chinese official a sport utility vehicle. This may violate:

a. the act of state doctrine.
b. the doctrine of sovereign immunity.
c. the Foreign Corrupt Practices Act.
d. the principle of comity.

Answer 1

c. the Foreign Corrupt Practices Act.

Step-by-step explanation:

Giving a sport utility vehicle to a Chinese official in order to obtain a contract with the Chinese government may violate the Foreign Corrupt Practices Act (FCPA). The FCPA is a U.S. law that prohibits bribery of foreign officials to obtain or retain business. It applies to U.S. individuals, companies, and entities operating within the jurisdiction of the United States, even if the bribery occurs outside of the country.

The act of providing a vehicle to a foreign official in exchange for a business advantage qualifies as a bribe, which is prohibited under the FCPA. The FCPA aims to promote fair competition and combat corruption in international business transactions. Violations of the FCPA can result in severe penalties, including fines and imprisonment.