CEA Anti-Corruption & Bribery Prevention 4 — Questions and Answers
Question 1: Which of the following scenarios most clearly illustrates 'bid rigging' as a form of corruption?
- A company submits a lower bid than its competitors
- Competing companies secretly agree to alternate who wins government tenders (Correct answer)
- A government agency sets a minimum bid price for a contract
- A company withdraws its bid after reviewing the specifications
Correct answer: Competing companies secretly agree to alternate who wins government tenders
Bid rigging occurs when competitors collude to predetermine the winner of a tender, depriving the procuring entity of genuine competition.
Question 2: Under the concept of 'respondeat superior' in U.S. law, a corporation can be held criminally liable for employee bribery when:
- The CEO had personal knowledge of the bribery
- The employee acted within the scope of employment intending to benefit the company (Correct answer)
- The bribery was approved in writing by the board of directors
- At least 10% of employees were involved in the scheme
Correct answer: The employee acted within the scope of employment intending to benefit the company
Under respondeat superior, corporate criminal liability attaches when an employee acted within their employment scope with intent to benefit the organization, even without executive approval.
Question 3: A whistleblower reports suspected bribery to company management, who then dismiss the employee. Under the Dodd-Frank Act, which protection applies?
- The employee may only seek reinstatement, not financial compensation
- The employee is protected from retaliation and may be entitled to reinstatement and back pay (Correct answer)
- Protection applies only if the report was made directly to the SEC, not internal management
- The employee has no protection if the allegations turn out to be unsubstantiated
Correct answer: The employee is protected from retaliation and may be entitled to reinstatement and back pay
Dodd-Frank's anti-retaliation provisions protect employees who report suspected securities violations, including FCPA violations, and provide remedies including reinstatement and double back pay.
Question 4: Which characteristic distinguishes a 'deferred prosecution agreement' (DPA) from a criminal conviction in FCPA cases?
- A DPA requires a guilty plea but avoids trial
- A DPA suspends prosecution while the company fulfills remediation obligations, avoiding a conviction (Correct answer)
- A DPA is imposed by a court without any DOJ involvement
- A DPA eliminates all civil penalties related to the underlying conduct
Correct answer: A DPA suspends prosecution while the company fulfills remediation obligations, avoiding a conviction
In a DPA, the government agrees to defer prosecution for a set period while the company implements compliance reforms; charges are dismissed if the company meets its obligations.
Question 5: When designing an anti-corruption training program, which group typically presents the HIGHEST risk and should receive enhanced, role-specific training?
- Human resources staff responsible for hiring
- Sales and procurement personnel in high-risk markets (Correct answer)
- Information technology staff managing internal systems
- Administrative assistants handling office supplies
Correct answer: Sales and procurement personnel in high-risk markets
Sales and procurement staff in high-risk markets interact directly with officials and counterparties in situations where bribery risk is elevated, requiring targeted training beyond general awareness.
Question 6: A company's compliance officer discovers that a subsidiary in a high-risk country has been recording facilitation payments as 'miscellaneous operating expenses.' This practice violates which FCPA provision?
- The anti-bribery provision
- The books and records provision
- The internal controls provision
- Both the books and records and internal controls provisions (Correct answer)
Correct answer: Both the books and records and internal controls provisions
Mischaracterizing payments violates the books-and-records provision (inaccurate records) and the internal controls provision (failure of controls to detect and prevent misclassification).
Question 7: Which of the following best describes 'tone at the top' in an anti-corruption compliance program?
- Having the compliance department issue annual anti-bribery memos
- Senior leadership visibly demonstrating commitment to ethical conduct through actions and communications (Correct answer)
- Posting the code of conduct on the company intranet
- Requiring all employees to sign an acknowledgment of the anti-bribery policy
Correct answer: Senior leadership visibly demonstrating commitment to ethical conduct through actions and communications
Tone at the top means leaders consistently model ethical behavior, speak openly about anti-corruption expectations, and enforce consequences—not just issue policy documents.
CEA Anti-Corruption & Bribery Prevention 4
Which of the following scenarios most clearly illustrates 'bid rigging' as a form of corruption?