Question

Are the actions undertaken by the companies or individuals in the following scenarios legal or illegal pursuant to U.S. law? Please explain each of your answers.

1. Scenario

A wire transfer of $200,000 to the Minister of Contracting of Gambia made by Bordeaux Builders, Inc., a French corporation, and originating from its corporate headquarters in New York in order to secure a construction contract.

2. Scenario

A birthday card and bottle of California wine sent annually by Woody Pulp, the chief executive officer of Pacific Paper Products, Inc., a U.S. corporation, to his long-standing friend who is the Director of Government Procurement for the Japanese government.

3. Scenario

A cash payment of $100 made by an agent of Chicago Chemicals Company, a U.S. corporation, to a processing clerk in the Chilean Office of Business Licensing in order to expedite consideration of CCC's application for authority to conduct business operations in Chile.

Answer 1

answer-

1-Illegal because The Foreign Corrupt Practices Act prohibits payments to foreign government officials by companies headquartered in the United States for the purpose of obtaining or retaining business.

2- Legal because The chief executive officer’s birthday gift lacks corrupt intent (knowledge that the act was done for an illicit purpose) and was not made with the intent to obtain or retain business.

3-Legal because The payment is grease money to a government official for the purpose of hastening the performance of a non-discretionary function.