1. Your company, Ajax Pharmaceutical, based in New Jersey, is approached by an agent for a company that has offices in Egypt and Jordan about participating in several joint ventures in the Middle East and Asia. The agent inquires about the status of your investment in Israel. You currently have an offer from a newly formed Israeli investment group to purchase your 30 percent share of Drugisco, an Israel-based company. How do you respond? What is your legal obligation? What other information do you need to answer the agent's question? He also asks about your ability to ship certain chemicals that are controlled. Do you have any obligation to report this inquiry? You initially ship the requested items to Japan. You discover during a late-night meeting in a karaoke bar that these items went to an intermediary and are now headed to Sudan. Do you have any legal responsibility? Ethical responsibility? What managerial controls can you implement to reduce the likelihood of this happening in the future?
2. Your company, Enzyme, Inc., manufactures chemicals that are used in commercial mixtures for industrial use.
Some of those chemicals can potentially be used as precursors in the development of a chemical weapon. You understand that Congress is considering the contentious issue of how to revamp the export control regimen, including the control of dual-use items. Do you think your company should take an active role in lobbying for a new law? What are the risks associated with such a position? Will you discuss these issues with your board of directors? Would you make this public in a press release? How would you respond to reporters' questions?