Suppose that AmTrain, a U.S.-based company, is submitting bids for the construction of a high-speed rail system in India by the Indian government. AmTrain has met with and wants to hire Josh Griffin, an international consultant who has worked with many Fortune 100 companies in their foreign business operations. AmTrain requires all of its agents, consultants, and contractors who work with it on its international operations to sign a statement in which they promise to comply with the FCPA. Griffin has refused to sign the AmTrain FCPA form. Which of the following best describes AmTrain's position when it receives the refusal?
A) The refusal is a red flag that would require AmTrain to at least do additional due diligence on Griffin .
B) AmTrain has not violated the FCPA if it hires Griffin and he does something its agreement prohibits .
C) AmTrain is not subject to the FCPA when contracts are with government agencies and not private foreign companies .
D) AmTrain has violated the FCPA by attempting to deal with Griffin .

Question

Quizplus · Accepted Answer

The refusal by Griffin to sign the AmTrain FCPA form is a red flag that would require AmTrain to at least do additional due diligence on Griffin. This is because AmTrain requires all of its agents, consultants, and contractors who work with it on its international operations to sign a statement in which they promise to comply with the FCPA. By refusing to sign the form, Griffin is indicating that he may not be willing to comply with the FCPA, which could put AmTrain at risk of violating the law. Therefore, it is important for AmTrain to investigate further and ensure that Griffin is a suitable candidate before hiring him.

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