True / False
1. The Electra-Amambay case involved a local Paraguayan firm that was terminated for “just cause” from
representing a Brazilian company.
a. True
b. False
2. The FCPA is a multilateral agreement among member nations of the WTO to combat the practice of global bribery.
a. True
b. False
3. The antibribery provisions of the FCPA specifically and clearly define the conditions that must be violated in order to
prosecute an individual or corporation for bribery of foreign officials.
a. True
b. False
4. In order to be liable for illegal payments made to foreign officials, the payment must be made directly to the official
from the firm receiving the favors granted.
a. True
b. False
5. Illegal payments routed through a independent foreign sales agent to foreign officials may result in criminal
prosecution of the corporation employing the agent.
a. True
b. False
6. Payments made to foreign officials by an individual for the purpose of expediting or securing the performance of a
routine or clerical governmental action are subject to fines up to $100,000 and/or a jail term of up to five years.
a. True
b. False
7. The United States is the only nation of the world that regulates advertising to children, such as tobacco
advertisements
a. True
b. False
8. Many countries require pre-clearance of children‘s television advertising.
a. True
b. False
9. The former communist countries of Eastern Europe have no advertising restrictions on tobacco and alcohol targeting
teenagers.
a. True
b. False
10. Most American lawyers can give competent advice on foreign marketing regulations and advertising laws.
a. True
b. False
11. One of the main objectives of the FCPA is to prohibit foreign company representatives in the United States from
bribing U.S. government, state, and county officials to obtain procurement contracts.
a. True
b. False
12. As a result of the global financial collapse there has been a great deal of international cooperation and success in
harmonizing the local foreign investment laws of most nations.
a. True
b. False
13. A company that forms an agency relationship with its sales representatives can be sued for damages incurred
through the acts of the agent against a third party.
a. True
b. False
14. Under the provisions of EC Council Directive 86/653, an agent accrues sales commissions on deals that occur within
his territory only when she or he has substantially participated in the events leading up to the customer’s purchase.
a. True
b. False
15. A principal who hires an independent agent within a host country is viewed as having opened an office and is then
subject to the host country’s tax laws.
a. True
b. False
16. The distinction between independent and dependent agents is important because tax and labor law considerations are
determined by the designated relationships.
a. True
b. False
17. A dependent agent relationship allows for greater quality control but reduces the level of profit that accrues to the
principal.
a. True
b. False
18. Truth-in-advertising is now a generally accepted business practice and laws prohibiting false advertising exist in
many nations.
a. True
b. False
19. Although bribery of government officials is considered a corrupt practice in the U.S., many countries traditionally
considered it to be a standard operating procedure and officials in those countries expected to be paid for granting
certain favors and therefore exempted from the Foreign Corrupt Practices Act.
a. True
b. False
20. The FCPA requires that individuals and corporations meet disclosure requirements for all monies sent abroad as
payment for fees owed to their sales agent.
a. True
b. False
21. Only payments in excess of $5,000 paid directly to foreign government officials are subject to criminal prosecution
under the FCPA.
a. True
b. False
22. Documentation submitted to the Department of Justice for review under the FCPA is considered confidential and
sensitive to national security.
a. True
b. False
23. Some cultures are less tolerant of vagueness and exaggeration in advertising than others.
a. True
b. False
24. Advertising abroad must comply with the legal guidelines established in the home country.
a. True
b. False
25. In a prosecution for violating the FCPA, the defendant’s conduct will be excused if he or she can prove that the
payment was paid as a result of extortion by the foreign official.
a. True
b. False
26. In order to avoid a charge of violating the FCPA, commissions and other payments to a foreign sales agent should
conform to customary rates normally paid to agents of that kind in the foreign nation.
a. True
b. False
27. Nepotism can be a violation of the Foreign Corrupt Practices Act.
a. True
b. False
28. If an executive of a computer technology firm based in Silicon Valley hires the eldest son of a Chinese Communist
leader for an internship as a token of friendship to facilitate the permit to establish a manufacturing facility in
Shanghai. Later, the U.S. Justice Department files a violation of the FCPA, is there a violation.
a. True
b. False
29. Under the FCPA, a payment can be illegal if it is made:
a. Corruptly, knowingly, and to expedite the performance of a routine governmental action.
b. Corruptly, negligently, and to expedite the performance of a routine governmental action.
c. Criminally, intentionally, and in order to obtain or retain business.
d. Corruptly, knowingly, and for assistance in obtaining business.
e. Any payment that is illegal under local law is illegal under the FCPA.
30. It is a defense to a prosecution under the Foreign Corrupt Practices Act that:
a. The amount paid was under $5,000.
b. Adequate records were kept to accurately reflect the transaction.
c. The payment was considered legal under the local law of the country in which the payment was made.
d. The payment was made to expedite the performance of a routine governmental action, such as processing
paperwork needed for a travel visa.
e. The U.S. defendant can show that the payment was made in the routine course of business.
31. Corporate penalties for violating the FCPA include:
a. Fines of no more than $100,000.
b. Fines up to $2,000,000.
c. Revocation of the firm’s license to do business in a foreign country.
d. Punitive damages.
e. Two of the above.
32. Individual penalties for violating the FCPA include:
a. Imprisonment of up to five years and a fine of up to $100,000.
b. Imprisonment of up to fifteen years and a fine of up to $10,000.
c. Fines, imprisonment, and discharge from the corporation.
d. Fines, imprisonment, and revocation of the right to travel in the foreign country.
e. None of the above.
33. Sales representatives that perform specific acts at the specific direction of the company they represent are
considered:
a. Agents of the company.
b. Principals of the company.
c. Independent contractors of the company.
d. None of the above.
34. Under EC Directive 86/653, an evergreen contract occurs when the agency relationship has:
a. Lasted for three or more years.
b. Been continued beyond the original fixed term with no formal renewal.
c. Been terminated by giving a three-month written notice.
d. All of the above.