George Sr., CEO and founder of the Bluth Company (an international development f

Question

George Sr., CEO and founder of the Bluth Company (an international development firm), builds communities of homes in the United States and around the world. George has been eager to move into the real estate market in Oceana (a country in Asia). However, George has been frustrated by how slowly the permit and approval process has been going for his latest development outside Oceana’s largest city, Sudden Valley. In an effort to move things along, George schedules several meetings where he does the following: (1) meets with the local government officials in Sudden Valley, offering them each $1,000 to vote for the approval of his development (this payment is illegal under Oceana’s laws) (2) has lunch with the governor of the province and offers him $10,000 to displace residents of a trailer park, clearing a plot of land that George can develop (this payment is illegal under Oceana’s laws) (3) pays several low level permit office workers $10,000 each to quickly approve some pending land use permits (these payments are legal under Oceana’s laws). Please explain what (if any) laws or norms George Sr. and/or the Bluth Company has violated and the potential penalties. In your answer don’t forget to: identify the legal issues presented by the facts of the question, define any relevant terms, and answer the question by applying legal reasoning (including naming the specific law or legal principle that applies)

Explanation / Answer

Every organisation operating at an international level, is governed by certain standards and regulations for ethical operations. Under the international and foreign law on bribery and corruption certain frameworks have been ratified by numerous member countries. These laws have been framed by various groups of organizations or relevant global organizations. The important rules which makes bribery of foreign public officials by companies and individuals were framed in the oecd convention on combating bribery of foreign public officials in 1997, and United Nations convention against corruption in 2003 which addresses bribery by organisations within public and private sector both home and abroad. Besides this the foreign corrupt practices act controls operations of multinational companies established legislations which impose criminal and civil penalties for brides or unlawful payments a Promises of such payment to foreign officials for the purpose of obtaining any favours, or influencing them in any manner to do acts or make decisions which may result in benefits to the company or any improper advantage which would not have otherwise accrued to the company, either in a direct manner through the company or indirectly through any agents representatives of the company. This actors applicable to all foreign companies whether listed on US exchange or not and also all us corporations and US nationals and all foreign nationals who was an act within the United States even when the act maybe without physical presence of such individual. All companies subject to the FCPA are expected to conduct due diligence while undertaking any act or transaction through intermediaries or agents or local partners as they are responsible and accountable for acts of such individuals representing the company under this act.

The Act was enacted mostly to prevent corporate bribery of foreign officials to gain an advantage and acquired companies to maintain accurate books records and accounts and all companies registered with the securities and exchange Commission to implement a responsible internal audit system and prohibited bribery or foreign officials by American corporation. In 1988 the Act was amended for analysing the fact of the corrupt practice occurring within knowledge of the management to conscious disregard and wilful blindness. This amendment however also provided an excuse to perpetrators of the act in labelling the bride August which is lawful under the laws of the foreign country and is to be considered an expenditure which is required for performance execution of a contract with the foreign goverment. In 1998 for the amendment was implemented for including the recommendations of organisation of economic cooperation and development convention on combating bribery of foreign public officials in international business transactions. the securities and exchange Commission along with the department of justice are responsible for enforcement of the foreign corrupt practices act. The Act maintains a distinction between bribery and payments made for facilitation especially those which may be permissible under the written laws of the host country. The payment is judged on the basis of being made for expedition in performance of a duty which the official is already bound to perform and does not provide any special advantage to the organisation. A prosecution violation of the fcpa can result in substantial penalties both Civil and criminal with criminal fine of 1 to 2 million per violation along with 20 years imprisonment . It can go as high as dollar 25 million for violation under the accounting and Record Keeping provisions. Define candy up to twice the value of the benefit that is sought to be achieved Through The Criminal act. This can be along with civil penalties through the securities exchange Commission with various penalties including for feature of assets and suspension on special cases debarment from undertaking business with the government.

1) In the given case George meeting the local government officials in Sudden valley and offering them each $1,000 to what for the approval of is development is an act which is unlawful in the host country as well as illegal under the foreign corrupt practices act as it amounts to an act of bribery providing an unfair advantage to the company over others by influencing the officials through bribery.

2) George having lunch with the governor of the province and offering him 10000 to displace residents of a trailer Park along with clearing a plot of land that he can develop is illegal under the host countries laws and is an extremely corrupt and unethical practice under the foreign corrupt practices act which can result in large criminal file and upto 20 years of imprisonment. This is also an unethical act as it involves displacing of for residence of a trailer Park who may be rendered homeless.

3) George paint several low level permit office workers dollar 10,000 beach to quickly approved some pending land use permits is not a violation under the foreign corrupt practices act as this payment is legal in the host country and it is meant to facilitate quicker action by the officials and does not require them to do any act which is not a part of their duties and nor does this provide any special advantage to Bluth company.

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