CFE – Law — Question 62

Which of the following situations would constitute a violation of the U.S. Foreign Corrupt Practices Act (FCPA)?

Answer options

• A. A U.S. company pays a $2,000 foreign corporation fee that is required in order to do business within the country.
• B. A U.S. company transfers $35,000 to the sole proprietor of a Chilean company to influence the award of a construction contract.
• C. A U.S. company transfers $45,000 to a Chinese public official to influence the award of lucrative overseas contracts.
• D. A private UK company transfers $15,000 to a Brazilian public official to influence the award of overseas construction contracts.

Correct answer: C

Explanation

The correct answer is C, as it involves a U.S. company making a payment to a Chinese public official with the intent to influence business decisions, which is a clear violation of the FCPA. Options A and B involve payments that may not directly violate the FCPA, as they do not pertain to bribing foreign officials. Option D involves a UK company, which is not subject to the FCPA, making it irrelevant to this question.