CCEP Anti-Corruption Practices 2 — Questions and Answers
Question 1: Under the Foreign Corrupt Practices Act (FCPA), which of the following is considered a 'foreign official'?
- A private sector employee in a foreign country
- An employee of a foreign government-owned enterprise (Correct answer)
- A foreign national working for a U.S. company
- A contractor hired by a multinational corporation
Correct answer: An employee of a foreign government-owned enterprise
The FCPA broadly defines 'foreign official' to include employees of state-owned or state-controlled enterprises, not just government employees.
Question 2: A company discovers that a third-party distributor paid bribes to win contracts on the company's behalf. Under the FCPA, which legal theory most likely exposes the company to liability?
- Respondeat superior
- Vicarious liability for negligence
- The 'knew or should have known' standard for third-party acts (Correct answer)
- Strict liability for agent misconduct
Correct answer: The 'knew or should have known' standard for third-party acts
The FCPA imposes liability when a company knew or consciously disregarded red flags that a third party was paying bribes on its behalf.
Question 3: Which element distinguishes a legitimate facilitation payment from a bribe under the FCPA?
- The payment is made to expedite a routine non-discretionary government action (Correct answer)
- The payment is below a $100 threshold
- The payment is documented in company records
- The payment is approved by senior management
Correct answer: The payment is made to expedite a routine non-discretionary government action
The narrow FCPA facilitation payment exception applies only to payments that expedite routine, non-discretionary ministerial acts by government officials.
Question 4: What does the UK Bribery Act 2010 require that the FCPA does not?
- Prohibition on bribing foreign officials
- A corporate offense for failing to prevent bribery (Correct answer)
- Prohibition on accepting bribes
- Mandatory self-reporting of discovered violations
Correct answer: A corporate offense for failing to prevent bribery
The UK Bribery Act's Section 7 creates a strict liability corporate offense for failure to prevent bribery, with an 'adequate procedures' defense unavailable under the FCPA.
Question 5: A compliance officer reviews a due diligence report showing a potential joint venture partner has unresolved bribery allegations. What is the most appropriate next step?
- Proceed with the deal since allegations are not convictions
- Require enhanced due diligence and contractual anti-bribery representations before proceeding (Correct answer)
- Reject the partner immediately without further review
- Disclose the allegations to regulators before proceeding
Correct answer: Require enhanced due diligence and contractual anti-bribery representations before proceeding
Unresolved bribery allegations are a significant red flag requiring enhanced due diligence and contractual protections before any business relationship proceeds.
Question 6: Which of the following best describes 'books and records' provisions under the FCPA?
- Requirements that all company documents be stored for at least 10 years
- Requirements for issuers to keep accurate books reflecting transactions and to maintain adequate internal controls (Correct answer)
- Requirements that all payments to foreign officials be publicly disclosed
- Requirements that auditors certify the absence of corrupt payments annually
Correct answer: Requirements for issuers to keep accurate books reflecting transactions and to maintain adequate internal controls
The FCPA's accounting provisions require issuers to maintain books and records that accurately and fairly reflect transactions and to devise and maintain adequate internal accounting controls.
Question 7: What is the primary purpose of an anti-corruption 'gifts and hospitality' policy threshold?
- To eliminate all gift-giving in business contexts
- To define a bright-line value above which approval or prohibition is triggered (Correct answer)
- To ensure all gifts are tax-deductible
- To set minimum acceptable hospitality standards for clients
Correct answer: To define a bright-line value above which approval or prohibition is triggered
Threshold limits in gifts and hospitality policies create clear, administrable rules that flag potentially problematic transfers of value for additional scrutiny or prohibition.
CCEP Anti-Corruption Practices 2
Under the Foreign Corrupt Practices Act (FCPA), which of the following is considered a 'foreign official'?