Which of the following acts is generally prohibited under the Foreign Corrupt Practices Act (FCPA)?

Answer options:

Payments to foreign officials to expedite routine governmental actions, such as processing visas.

Reasonable expenditures for travel and lodging of foreign officials directly related to product promotion.

Payments to a foreign official to influence a decision to award a government contract.

Payments to private foreign businesses to secure a commercial contract.

How to approach this question

The FCPA targets bribery of foreign *government* officials to get *business*. It allows 'grease' payments for routine paperwork.

Full Answer

C.Payments to a foreign official to influence a decision to award a government 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. It contains an exception for 'facilitating payments' for routine governmental actions.

Common mistakes

Thinking all payments to foreign officials are banned (grease payments are allowed). Thinking private bribery is covered by FCPA.

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