Under the Foreign Corrupt Practices Act under what condition

Under the Foreign Corrupt Practices Act, under what conditions is a bribe not unlawful? Explain, and provide an example.

Solution

Under the Foreign corrupt practices act,the bribe is not unlawful when the payment is regarded as grease payments which are permissable under the FCPA.It is also known as facilitation payments and they are made to the officials to expedite his performance of the routine duties he is already bound to perform.The exception focuses on the purpose of the payment rather than its value.The payments may be legal if they are permitted under the written laws and regulations of the local country.Also,certain payments and reimbursements which relates to product promotion are permitted under the FCPA.

Example-travel and lodging expenses made to the foreign officials related to promotion of products or execution of a contract.