Wright Corp.,an American firm,is establishing an office in Africa with Mary as the manager.After two months of endless efforts,Mary is informed that in order to get utilities for its African branch,she must give some money to the government-based electric company agent as an "encouragement," just as all the other businesses have done.Under the Foreign Corrupt Practices Act,which of the following statements about the payment is true?

Question

Quizplus · Accepted Answer

The Foreign Corrupt Practices Act does not forbid "grease" payments to foreign officials or political parties where the purpose of the payments is "to expedite or to secure the performance of a routine governmental action," such as processing papers (like visas),providing police protection,and securing phone service.In this scenario,the payment to be made by Mary to the African branch is legal since it is merely "grease" money to expedite routine action.