TERM PAPER

CONTENTSCASE 2-5

Comparison of eBay & alibaba2Different types of legal and illegal bribes FCPA, Criminal Law of PRC, Law Against Unfair Competition of the PRCIllegally listed briberies fall under which classificationLubrication, Extortion, or Subornation What is Illegal under the FCPAWhat would be ethical if the FCPA did not existWhich expenses in the lawsuit violates the FCPAWhat legal issues are raised by the retired agentAlternatives to paying bribes internationally

IS BRIBERY LEGAL OR ILLEGAL?CASE 2-53Under the FCPA there is a distinction between bribery and extortion The Criminal Law of the PRC classifies its type of bribery as common briberyLaw Against Unfair Competition for the PRC classifies its type of bribery as commercial

ILLEGALY LISTED BRIBERIES FALL UNDER WHICH CLASSIFICATION?CASE 2-54Subornation involves a large payment, service, or gift given to an official In the U.S, extortion is illegal and it can be classified under both lubrication and subornation

WHAT IS ILLEGAL UNDER THE FCPA?The Foreign Corrupt Practices Act makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties.Stiff penalties can be assessed if found guilty of paying a bribe CASE 2-55

WHAT IS ETHICAL IF THE FCPA DID NOT EXIST

The common sense response to anyone in power and control of a country would be what is the right and wrong decision to makeWhat the common good is for the people of that country as well as the benefits that go along with itCASE 2-56

WHICH EXPENSES IN THE LAWSUIT VIOLATES THE FCPAThe evidence against the American company paying Chinese Government Officials over a million dollars in fees for services The American company arranged for two Chinese banking officials and their family members vacations around the world

CASE 2-57

WHAT LEGAL ISSUES ARE RAISED BY THE RETIRED AGENTCASE 2-58

The Foreign Service Agent is trying to level the playing field, as he calls itThe law shouldnt even exist if those that are supposed to enforce it do not abide by it.

ALTERNATIVES TO PAYING BRIBES INTERNATIONALLYI would have to choose compromising on an agreement that is beneficial to both partiesBoth parties have to agree (the host country government and the MNC) and lock into the binding contract that will be beneficial and fair to both sides.

CASE 2-59

Case 2-5: Coping with Corruption in Trading with China