Prior to the Passing of the Foreign Corrupt Practices Act

question 17

Short Answer

Prior to the passing of the Foreign Corrupt Practices Act, illegal corporate behavior was punishable only through "secondary" sources of legislation like the _____, which required full disclosure of funds that were taken out of or brought into the United States.

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Definitions:

Mutual Mistake

A legal doctrine where a contract may be voided if both parties were mistaken about a fundamental aspect at the time of agreement.

Adverse Effect

A negative impact or harm that is caused by an action or event.

Material Effect

An impact significant enough to influence a decision, action, or the outcome of a situation, often used in legal and financial contexts.

Misrepresentation

The act of providing false, misleading, or inaccurate information with the intent to deceive or mislead.