What is the legal outcome for Acme Company regarding the payment to a deputy minister in a foreign country?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

The Foreign Corrupt Practices Act (FCPA) prohibits U.S. companies and their representatives from bribing foreign officials to obtain or retain business. Under this act, both the company and individual officers can face criminal liability for engaging in such conduct.

In this scenario, Acme Company, along with its president and treasurer, can be held criminally liable for paying a bribe to a foreign official. This liability extends to any actions taken to conceal the bribery, as conspiracy to cover up the bribery is also an offense under the FCPA. It is important to note that the law applies regardless of the legality of the payment in the foreign country; the FCPA focuses on the actions of U.S. entities.

Thus, the correct choice reflects the possible criminal liability surrounding both the act of bribery and the act of conspiring to hide it, emphasizing the breadth of legal consequences under the FCPA for both the company and its key individuals involved in the wrongdoing.

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