can u answer 1-4

malo been takia Universal Industries. Universal Industries is in desper- Unfortunately, even though the new military contracts ate need of a large contract to boost its declining U.S. were going to provide more than enough money to boost revenues. The company doesn't have a lot of interna- Universal's performance numbers, they weren't going to tional exposure, despite its ambitious name, but its chief go into effect until the following quarter. After a behind- operating officer (COO) may be about to change that. By closed-doors discussion, the senior management team coincidence, at a recent class reunion, he ran into an old decided that Universal would adjust some of its fourth quar- classmate who was a high-ranking federal official respon- ter expenses in order to hit the price target that the analysts sible for a lot of the bidding for large defense contracts. were expecting. The team fully expected that the revenue After several rounds of drinks, the classmate began talking from the military contracts would allow them to make up for about his latest projects. the adjustments in the next financial year. Universal has done a lot of defense work as a subcon- However, since Universal's annual revenue exceeded tractor for the major players in the industry, and the COO $1.4 billion, the CEO and CFO were required to put their sig- was able to leverage that experience to use his insider natures on the financial reports confirming their authenticity. information to get Universal added to the list for several After a couple of sleepless nights, and confident that requests for proposal (RFPs) on a large expansion of a Mid- the military contracts would help them fix all this in the dle Eastern military base. end, they both signed To strengthen its position in the bidding process, sev- 1. Identify the ethical transgressions in this case. eral key Universal operatives made unpublicized visits to the towns surrounding the base and, in return for gifts of 2. Which piece of legislation would apply to each cash and other favors to local businesspeople and politi. transgression? cians, managed to tie up the exclusive services of sov- 3. What would be the penalties for each transgression? eral local contractors, making it almost impossible for the 4. If Universal could prove that it had a compliance pro- other contenders to meet the requirements of the RFPs. gram in place, how would that affect the penaltios? The COO was equally generous in his gift to the daughter of his classmate in recognition of his help in getting the Inside information