Which of the following is permitted by the Foreign Corrupt Practices Act?
A) a bribe paid by foreign firms operating in U.S. territories
B) a bribe paid by U.S. firms operating in a foreign country that permits bribes to be paid
C) a payment to a foreign government official to influence a customs official
D) a payment to a customs official to clear legitimate merchandise

Question

Quizplus · Accepted Answer

The Foreign Corrupt Practices Act permits payments to foreign officials to facilitate routine governmental action, such as the clearance of legitimate merchandise by a customs official. Bribes paid by U.S. firms operating in a foreign country, even if it is permitted by local law, are not allowed under the Act. Payments to influence a customs official would be considered a bribe and also not permitted under the Act. Payments made by foreign firms operating in U.S. territories would not be covered by the Act as the Act applies to U.S. firms or persons only.

Which of the Following Is Permitted by the Foreign Corrupt