Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Business Ethics, Code of Conduct and Anti-Bribery

Zenith Gadgets Inc., incorporated in the USA, runs a sales office in Pune, which is part of its business. Its Pune sales manager offers a customs officer an undue advantage to clear goods faster than rivals' consignments. Is Zenith a commercial organisation under Section 9?

Yes. A body incorporated outside India that carries on a business, or part of a business, in any part of India is a commercial organisation. Zenith's Pune office satisfies this, and a promise of undue advantage suffices, so acceptance by the officer is not required.

  1. ANo, because it is not incorporated in India
  2. BNo, because the offer was not accepted by the officer
  3. CYes, as a body incorporated outside India carrying on part of a business in IndiaCorrect
  4. DYes, but only if its Indian subsidiary is also prosecuted

Explanation

Section 9(3)(a)(ii) covers a body incorporated outside India which carries on a business, or part of a business, in any part of India. Giving or promising suffices, so acceptance is unnecessary. A subsidiary's prosecution is not a precondition.

Did you get it right without looking?

One question tells you little. A timed set on Business Ethics, Code of Conduct and Anti-Bribery shows your real accuracy, how long you take and where you lose marks.

Practise Business Ethics, Code of Conduct and Anti-BriberyFree diagnostic mock

More Business Ethics, Code of Conduct and Anti-Bribery questions