The FCPA allows a company to pay governmental officials to secure routine governmental action.These payments are called grease payments and these payments are not illegal if the recipient has no discretion in carrying out a governmental function.

Solved

A Grease Payment

Question 46

Multiple Choice

A grease payment:

A) is one that is made by a company toward foreign governmental officials to secure routine governmental action.
B) is one that is made by a company to the government for the purpose of obtaining goods-and-services contracts.
C) is an offer to make a prohibited payment.
D) is any gift of value to government officials for the purpose of obtaining business.

Correct Answer: