Question

Oswaldo Enterprises, a US company, began to do business in a small Asian nation. The representatives of Oswaldo bid on government contracts. Although they were by far the lowest bidder and were offering to sell a superior product, Oswaldo never was awarded a contract. Oswaldo officials learned after inquiring that high-level officials had to be given substantial sums in bribes to be awarded a contract. Oswaldo officials paid the bribes and were awarded the contracts. Oswaldo officials are considering this as a necessary cost of doing business, but they are concerned about violating U.S. law.

Required:
Discuss the implications of this under the Foreign Corrupt Practices Act.

Answer 1

This is a violation of the Foreign Corrupt Practices Act (FCPA)

Step-by-step explanation:

The Foreign Corrupt Practices Act (FCPA) is a United States government law enacted in 1977. It prohibits practice of bribe payments to foreign officials with the aim of retaining business or gaining contracts.

This law covers those with ties to the United States and those that violate the law within the United States.

So nationals of the US must obey FCPA regulations even when they are outside the country.

In this scenario the action of Oswaldo officials who paid the bribes and were awarded the contracts, considering this as a necessary cost of doing business is a clear violation of FCPA regulations