CASE STUDY.

Read Jennings $(10$th ed$.)$ Case $6\mathrm{.}6$: Product Dumping $($pp$.458-459)$; then, answer the following questions:

$1.$ If you were a manufacturer holding a substantial inventory of a product that had been outlawed in the United

States, would you have any ethical concerns about selling the product in countries that do not prohibit its sale?

$2.$ Suppose the inventory write$-$down that you will be forced to take because of the regulatory obsolescence is

material$$nearly a $20\%$ reduction in income will result. If you can sell the inventory in a foreign market, legally,

there will be no write$-$down and no income reduction. A reduction of that magnitude would substantially lower

share market price, which in turn would lead your large, institutional shareholders to demand explanations and

possibly seek changes in your company$$s board of directors. In short, the write$-$down would set off a wave of

events that would change the structure and stability of your firm.

$$ Do you now feel justified in selling the product legally in another country?

$3.$ Is selling the product in another country simply a matter of believing one aspect of the evidence$$that the product

is safe?

$$ Is this decision a matter of the credo as well?

$4.$ Would you include any warnings with the product?

$5.$ You will also need at least four peer$-$reviewed sources.