1. The FCPA contains a requirement for ______________ by covered companies and well as the more-publicized anti-bribery provisions.

a.Filing of quarterly financial statements with SEC.

b.Truth-in Advertising

c.Accurate recordkeeping.

d.Annual tax payments of 1.0% of revenue to subsidize US government compliance

2.The Foreign Corrupt Practices Act (FCPA) prohibits___________________.

a.The offering of bribes by US companies or their agents to foreign government officials intended to retain or get business with a company or country.

Company ("ABC") located in Arlington, Texas makes TV sets. It agrees to sell 1,000 TV sets to Sanborn Ltd. Located in Mexico City but asks Sanborn to post a letter of credit at Mexico Capital Bank ("Bank") in Mexico City to pay for the TV sets. ABC is the _________ under the letter of credit and will be paid under a standard letter of credit _______. The correct answers in order for the blanks are_________.

a. Beneficiary ...when the TV sets cross the border into Mexico.

b. Seller...when any warranty problems with the TV are discovered by Sanborn customers and fixed by ABC.

c. Beneficiary...when ABC delivers to the Bank the bill of lading and other documents specified in the letter of credit.

d. Options holder... after the TV sets are accepted by Sanborn in Mexico.

3.ABC enters into a foreign sales agent agreement with Bill in France. Under the agreement, Bill receives a 10% commission on all sales in France he arranges for ABC products. .He sells $1,000,000 in ABC products . ABC receives payment in the total amount of $800,000 for the products. ABC owes Bill _______ under their agreement.

a. $1,000,000

b. $100,000

c. $1,100,000