Rio business corporation pays potential clients, including private foreign companies and the representatives of foreign labor organizations to facilitate business. if rio knows that the payments will be passed on to a foreign government, this practice is
a. illegal if the payments violate the foreign corrupt practices act.
b. legal because a third party acts as a "go-between."
c. legal because private parties are involved on both sides of the deal.
d. legal because the payments are intended to facilitate business.

Corporation R makes payments to potential clients, including representatives of foreign labor organizations and private foreign companies to facilitate business. If the company knows that the payments will be passed on to a foreign government, then this practice is illegal if the payments violate the Foreign Corrupt Practices Act.  

Further Explanation:

Foreign Corrupt Practices Act: It is enacted for making payment unlawful that is made by certain classes of entities and persons to foreign government officials to facilitate business.

Justification for correct and incorrect

a.

Illegal if the payments violate the Foreign Corrupt Practices Act: This option is correct.

The FCPA states any payment made to the foreign government to assists in retaining and obtaining business is unlawful under the law. So, if the payment violates the conditions that are laid down in the Act, then it is illegal.

b.

Legal because the third party acts as “go-between’’: This option is incorrect.

According to the law, if the payment is made indirectly or through the agent but violates the conditions that are laid down in the Act, then the payment is still considered.

c.

Legal because the private parties are involved on both sides of the deal: This option is incorrect.

The involvement of the private parties on both sides of the deal does not make the payment legal to a foreign government if it is made to facilitate the business.

d.

Legal because the payments are made to facilitate the business: This option is incorrect.

The payment made to a foreign government for obtaining or retaining the business in the country is illegal under the Foreign Corrupt Practices Act.

Learn more:

1. Legal liability of the business

2. The percentage of sales method

3. The sales budget

Answer details:

Grade: Middle School

Subject: Business Studies

Chapter: Business law

Keywords: Rio Corporation makes payments to potential clients, including representatives of foreign labor organizations and private foreign companies to facilitate business. If the company knows that the payments will be passed on to a foreign government, this practice, illegal if the payments violate the Foreign Corrupt Practices Act, legal because the third party acts as “go-between’’, legal because the private parties are involved on both sides of the deal, legal because the payments are made to facilitate the business.

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explanation: