Question:
Karnes Company has been doing business in Shanghai for the past three years. The company produces leather handbags that are in great demand there. When Karnes's sales person Harriet Pakay was recently in Shanghai, Kai Choy, the purchasing agent for Chen Enterprises, approached her to arrange for a purchase of 2,500 handbags. Karnes's usual price is $75 per bag. Kai Choy wanted to purchase the handbags at $65 per bag. After an hour of haggling, they agreed to a final price of $68 per item. When Pakay returned to her hotel room after dinner, she found an envelope containing five new $100 bills and a note that said, "Thank you for agreeing to our order of 2,500 handbags at $68 per bag. My company's president wants you to have the enclosed gift for your fine service." Pakay later learned that Kai Choy was following her company's normal business practice. What should Harriet Pakay do? Is the gift hers to keep? Be prepared to justify your opinion