Question
Ashley ultimately resolves the issue with the car dealership through arbitration.Deciding she wants a new start in life, and with a bit of surplus cash
Ashley ultimately resolves the issue with the car dealership through arbitration.Deciding she wants a new start in life, and with a bit of surplus cash sitting in her checking account, Ashley decides to move to Minneapolis to take a new job at Tar-mart's corporate headquarters.Tar-mart is an American company and its stock trades on a U.S. stock exchange.
Ashley's first major assignment as part of her new job is to evaluate a case dealing with the question of whether Tar-mart's activities in Canada might have violated the Foreign Corrupt Practices Act (FCPA). Specifically, evidence indicates that one of Tar-mart's purchasing agents in Canada helped establish a Tar-mart warehouse in a Canadian municipality. Tar-mart was building the warehouse to compete more effectively for a lucrative Canadian maple syrup distribution contract. Tar-mart's purchasing agent, through a Canadian intermediary, paid: $521 to the municipalities permit clerk in the clerk's personal capacity to help expedite the permit application and processing, $321 to the permit clerk's brother for foreign language translation support (as Canada requires everything to be in French and English), $1198 to the municipality for the actual permit application, and $219 to a public notary (who happens to be the permit clerk's sister) for certified copies of the final permit. Also, the purchasing agent authorized a payment of $11,854 to the municipality's mayor and critical allies to ensure Tar-mart's permit would be approved and so that a competitor's permit would be denied.By doing this, it appears Tar-mart could derail the competitor's entry into the local market.The purchasing agent recorded all of these payments and reported them back to Tar-mart's corporate headquarters. The corporate office accountants labeled all of these payments as normal and proper business expenses that could be deducted from Tar-mart's income tax obligations but flagged them for further compliance review.Ashley now has the case to conduct a compliance review.
8.After her initial review, Ashley is convinced that the purchasing agent's actions violated the FCPA. After sending the packet up to Tar-mart's lawyers, they send it back with a note stating that most of the payments were lawful, but at least one of them probably did violate the Foreign Corrupt Practices Act.Take the lawyer's place drafting this note - identify at least one payment and explain why, with specificity, why it violated the FCPA.
9. Tar-mart's attorneys also flagged the situation due to anti-trust concerns under Section 2 of the Sherman Act.Again, acting as Tar-mart's attorney, explain why this situation potentially violates Section 2 of the Sherman anti-trust act.
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