BLAW assignment

BLAW assignment - The Foreign Corrupt Practices Act...

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The Foreign Corrupt Practices Act (FCPA)—A Student Exercise in Statutory Interpretation Purpose of Exercise: To expose the business student to the law and its requirements and expose the business student to the reading and interpretation of a federal statute. Deal-Making in the Public-Private Context: The Menace of Corruption Most corporations have explicit rules on the matter of distinguishing between appropriate gift- giving and bribery. Common criteria include: (1) consistency with customary business practices, (2) not excessive/not construable as a bribe, (3) no violation of law or ethics, and (4) public disclosure would not embarrass the company. Question: Do these four criteria provide a sound basis for legal and ethical decision- making? Do you see any issues relating to the application of these criteria? It is important to note that the word excessive is not defined. Question: What precautions should be undertaken before a gift is given to a government official? The gift must be approved by the legal department to ensure compliance with the Foreign Corrupt Practices Act. Submission to the company’s Ethics Officer should also be made to ensure that the gift complies with the company’s ethics and conduct codes. What facts or information would you want to know before making your decision? Gifts to private employees have been disguised as commissions, discounts, rebates, and allowances. How can devices be policed to make sure that they are not disguised bribes? Benchmarks include industry practice, statements on such items in the company’s price circular, payments must be made to the other company not to individual employees, and devices should not be used to avoid governmental regulatory or tax laws. Instructions Review the Law in Part I (key provisions of the FCPA) and then fill in the Blanks in the Part II Worksheet. Finally, answer the 4 hypothetical problems in Part III. Part I: Foreign Corrupt Practices Act (FCPA)—Elements of the Crime (15 U.S.C. § 78dd-1: Anti-Bribery Provisions) (a) Prohibition It shall be unlawful for any issuer [corporation registered under the Securities and Exchange Act of 1934] or for any officer, director, employee, or agent of such issuer or any stockholder thereof acting on behalf of such issuer, to offer, pay, promise to pay, or authorize the payment of any money, or offer, give, promise to give, or authorize the giving of anything of value to—
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(1) any foreign official or political party or official thereof, any candidate for foreign political office, or any person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to any foreign official, to any foreign political party or official thereof, or to any candidate for foreign political office for purposes of— (A) (i) Influencing any act or decision of such foreign official in his official capacity, or (ii) inducing such foreign official to do or omit to do any act in
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This note was uploaded on 02/07/2012 for the course STAT 5101 taught by Professor Staff during the Fall '02 term at Minnesota.

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BLAW assignment - The Foreign Corrupt Practices Act...

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