J & M, LLC, a small book publishing company, wrote off the debt of Desert View Academy, and The Basics of Learning, both small private schools, after it determined that the schools were facing serious financial difficulty. No notice of the action was sent to the schools; J & M simply stopped sending bills. Nearly a year later, The Basics of Learning was given a large endowment and a government grant. The resulting publicity brought the school to the attention of J & M, which immediately reinstated the account, and sent a new bill to the school, including interest for the entire time the debt was outstanding. No further action was taken regarding Desert View, which was still operational.

Questions:

1. Did J & M act ethically in reinstating the debt of one client, and not the other? Explain.

2. Is it ethical for J & M to add interest to the bill? Why or Why not?