Assignment:
You are the Director of Foreign Sales for Acme Manufacturing, Inc., a U.S. company with headquarters in Miami, Florida. Acme Manufacturing of Brazil (AMB), a subsidiary of Acme Manufacturing Inc., was formed to represent Acme's interests in Brazil. Acme Manufacturing Inc. controlled all of AMB's actions, paid all expenses, employed management, and consolidated financial statements. You have recently discovered that your Sales Manager, Don Johnson, has been paying or authorizing bribes to the customs and other government officials in Brazil to accept documents that understate the value of Acme's products imported into Brazil to reduce the duties, sales taxes, and other fees owed by AMB.
Using Foreign Corrupt Practices Act (FCPA), analyze the issues facing Acme Manufacturing Inc. and the individuals involved, as well as arguments for and against the allegations that these parties have violated the FCPA. Consider the following in your analysis:
- What is the purpose of the FCPA?
- What is the difference between a bribe and a facilitation fee? Which one applies in this case?
- Does it make a difference that bribes are legal in Brazil?
- Does the FCPA make it more difficult for American companies to compete in foreign countries?
- What are the legal elements needed to prove bribery under the FCPA?
- If one or more of the parties are found guilty, what recommendations would you make to Acme Manufacturing Inc.?