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

Answer options:

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

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

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

A payment to a private foreign company's CEO to secure a supply contract.

How to approach this question

FCPA bans bribes to foreign OFFICIALS to GET BUSINESS. It allows 'grease payments' for routine actions and reasonable promo expenses.

Full Answer

B.A payment to a foreign government 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. Facilitating payments for routine governmental actions (like customs processing) are an exception.

Common mistakes

Thinking all payments to officials are banned (ignoring the facilitating payment exception) or thinking private bribery falls under FCPA.

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