Under the Foreign Corrupt Practices Act (FCPA), which of the following payments is most likely prohibited?

Answer options:

A payment to a foreign customs official to expedite the processing of paperwork for a shipment of goods.

A reasonable expenditure for travel and lodging for a foreign official to visit the company's manufacturing facility.

A payment to a foreign official to influence the award of a government construction contract.

A payment to a private foreign business owner to secure a supply contract.

How to approach this question

Distinguish between 'obtaining business' (bribe) and 'routine governmental action' (grease payment).

Full Answer

C.A payment to a foreign official to influence the award of a government construction contract.✓ Correct

The FCPA prohibits giving anything of value to a foreign official to influence an official act or decision to obtain or retain business. Option C is a classic bribe to get a contract. Option A is a 'facilitating payment' (grease payment) for routine governmental action, which is an exception. Option B is a bona fide promotional expense. Option D involves a private party, not a government official.

Common mistakes

Thinking all payments to officials are banned (grease payments are the exception).

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