Exam 16: Marketing: Representatives,Advertising,and Anti-Corruption

Pursuant to EC Council Directive 86/653,an economic conditions alarm is sounded by the principal for the benefit of his or her agent:

Many countries require pre-clearance of children's television advertising.

Imagine how a developing economy would wish to address truth in/deceptive advertising.Draft a position paper.

Describe the ways that advertising regulation or consumer protection laws theoretically might differ in market economies as compared with non-market economies.Give practical examples of this theory.

A company that forms an agency relationship with its sales representatives can be sued for damages incurred through the acts of the agent against a third party.

In order to be liable for illegal payments made to foreign officials,the payment must be made directly to the official from the firm receiving the favors granted.

Truth-in-advertising is now a generally accepted business practice and laws prohibiting false advertising exist in many nations.

A dependent agent relationship allows for greater quality control but reduces the level of profit that accrues to the principal.

Evaluate the foreign political ramifications of bribery (witness the scandals and resignations in countries such as Japan,the Netherlands,and Italy in the 1970s,not to speak of the tremendous political impact in the developing countries).Does corruption interfere with the foreign policy of the United States,exerting influence that may be counter to U.S.policy?

One of the key criticisms of the accounting provisions of the FCPA is its failure to define a standard for materiality.

Nepotism can be a violation of the Foreign Corrupt Practices Act.

Which of the following statements explain the characteristics of an independent agent?

Documentation submitted to the Department of Justice for review under the FCPA is considered confidential and sensitive to national security.

The FCPA prohibits U.S.firms from paying bribes to:

Are the actions undertaken by the companies or individuals in the following scenarios legal or illegal pursuant to U.S. law? Please explain each of your answers. -"Scenario" A cash payment of $100 made by an agent of Chicago Chemicals Company,a U.S.corporation,to a processing clerk in the Chilean Office of Business Licensing in order to expedite consideration of CCC's application for authority to conduct business operations in Chile.

Are the actions undertaken by the companies or individuals in the following scenarios legal or illegal pursuant to U.S. law? Please explain each of your answers. -"Scenario" A birthday card and bottle of California wine sent annually by Woody Pulp,the chief executive officer of Pacific Paper Products,Inc.,a U.S.corporation,to his long-standing friend who is the Director of Government Procurement for the Japanese government.

Advertising abroad must comply with the legal guidelines established in the home country.

The Electra-Amambay case involved a local Paraguayan firm that was terminated for "just cause" from representing a Brazilian company.

An American manufacturer is setting up a manufacturing plant in China.A Chinese telecommunications worker has asked the American firm's agent to pay him a fee of $500 for setting up Internet service in the new plant.Under the FCPA,if the American agent pays the fee,it will be considered:

In U.S.v.Joel Esquenazi,Carlos Rodriguez,the court's opinion reflected the difficulty in trying to define ____as used in the FCPA.