Aeroflop, a U.S. firm, wants to sell several million dollars worth of airplanes to a government-owned airline in a European country famous for cheese. In order to get the contract, Aeroflop agrees to pay a 5% kickback to another U.S. company if that company agrees to buy all of its cheese from a seller in that European country.
a. Aeroflop's sale to the government-owned airlines is allowed under the Agreement on Government Procurement.
b. Aeroflop's sale is prohibited because the Agreement on Government Procurement prohibits offsets.
c. Aeroflop's sale is allowable because the European nation is treating Aeroflop no less favorably than its nationals.
d. The WTO dispute resolution panel must authorize both contracts prior to the sale.
