mgmt 346 ch 16 mkting: reps/ads/anticorruption

sales representative

-can sue principle for acts of agent -one party performs specific acts on the behalf or at the discretion of the principle

mandatory provisions the EU council directive uses to protect local agents

-economic conditions alarm -commission payments -commission override

independent contractor

-liable for their own acts -performs general tasks but retains discretion and independence

dependent agent

1. salary/hourly 2. works for one client 3. a principal "opens an office" when this person is hired in the host country 4. principal is liable

independent agent

1. works for commission 2. works for many clients 3. a lot of control 4. principle is not liable

EU needs how many years of notice to terminate a contract

3

A US company doing business in Latin America through an independent agent there may have contractual provisions allowing termination of their contractor agreement for any reason. This may not be valid under various state laws which "override" or suppress the private contract provisions. These laws usually:

a. Are intended to protect the interests of the local agent-contractor and local small businesses.

Freedom of Information Act

the request of intertpretation of the fcpa or documents are subject to disclosure

T/F PR needs just cause for substantial matter

true

Foreign Corrupt Practices Act

outlaws payments of bribes by U.S citizens to public officials in other countries

The Canadian province of Quebec has statutes in place intended to promote French culture and protect French heritage there called:

french language laws

Often courts have to decide if advertiser's claims are deceptive or merely:

Vague exaggerations called "puffing

In addition to its anti-bribery provisions, the FCPA also contains:

a. Accounting and record-keeping requirement mandating accuracy.

After enactment of the FCPA, various multinational treaties were signed to fight governmental corruption. They include:

a. The UN Convention against Corruption.

FRCP accounting/record keeping provision

system of controls requiring public companies to have accounting systems which detect and report corrupt payments

Arbitration tribunals hearing international contract dispute cases such as Marlwood and World Duty Free have imposed a drastic remedy on a party by:

c. Refusing to enforce contracts induced by bribery.

what is a bribery exception

facilitating or expediting a rountine governmental action like a visa/mail or phone service

The FCPA allows a US company to offer a foreign government official financial value to perform routine, administrative acts not involving the official's exercise of discretion. These offers are called:

facilitating payments

FCPA "grease payment" exception

Exception allowed for when the payment is a facilitating payment to secure the performance of a ROUTINE government action.

T/F foreign business dont need just cause to terminate

true

T/F french labor code requires big payment to agent

true

EU Council Directive 86/653

parties may enter into fixed term contract -if they go over term, it becomes a evergreen if: 1. its been 3+ years 2. continued beyond fixed term 3. its not terminated - protects local agents through mandatory provisions

t/f Courts have jurisdiction over a person who commits a FCPA jurisdiction if he commits the act while in the territory of the US

true