Secret Sentinel $11\mathrm{.}2$ Manufacturing$/$Management SHOULD THE FIRM AGREE TO THE DEMANDS OF A SUPPLIER? Secret Sentinel has entered into a contract with Total Fabricator, Inc. $($TFI$),$ a manufacturing company, to manufacture, package, and label $2,000$ Nanny Cams for $$15$ per unit. Because of the likelihood that Secret Sentinel will succeed, TFI also wants to produce the next $10,000$ units at the same price per unit. To improve its leverage over Secret Sentinel, TFI refuses to produce and ship the first $2,000$ units for the contract price of $$15$ per unit unless Secret Sentinel guarantees that TFI will have the contract for the next $10,000$ units as well. Both Ramon and Robin know that, for a larger order, they can negotiate a better price per unit; however, they also know that they must receive the first $2,000$ units immediately and, therefore, they must rely on TFI. The Secret Sentinel firm members seek your advice. What legal risks are inherent in TFI$$s position? What legal remedy can Secret Sentinel seek if it agrees to these terms now but wants to avoid this agreement later? BUSINESS CONSIDERATIONS How does a firm gauge when a $$hardline$$ position approaches illegality? Is hard bargaining illegal? Should a firm err on the side of caution and always avoid taking such an approach? ETHICAL CONSIDERATIONS Is it ethical to drive a hard bargain with another business because you have more leverage in the negotiation? Why or why not? What ethical theories would be more inclined to accept hard bargains? Would hard bargains with consumers or employees be different ethically than those with other businesses? Why or why not?