Rich Hasbro is a vice president for Huffy Diapers.He currently heads the African division of this international company.He has just been able to secure approval for sale of Huffy Pull-Ons in the Sudan.When the Pull-Ons arrive at the borders,a customs agent demands $5,000 before he will allow the Pull-Ons into his country.Rich tells the trucking company,"Pay him.I'll reimburse."

Question

Quizplus · Accepted Answer

Rich has violated the Foreign Corrupt Practices Act (FCPA) by authorizing a payment to a customs agent to facilitate the entry of goods into a country. The FCPA prohibits payments to foreign officials for the purpose of obtaining or retaining business, and this scenario falls under such a violation. Facilitation payments are a narrow exception under the FCPA for minor payments to expedite routine governmental actions, but this situation appears to go beyond what might be considered a minor or routine action.

Rich Hasbro Is a Vice President for Huffy Diapers