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1. In 2000, Subaru Indiana Automotive contracted with Allegiant Global Services to have them remove all waste from the Assembly Plant with the objective

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1. In 2000, Subaru Indiana Automotive contracted with Allegiant Global Services to have them remove all waste from the Assembly Plant with the objective of achieving Zero-landfill deposits over time. The contract requires that Allegiant Global Services pay a fee to Subaru for all materials removed from the Assembly Plant and that Allegiant is responsible for paying all shipping charges. If the terms included FOB for scraps that Allegiant purchased from SIA, what would the terms specify? 2. The case does not specify whether Subaru Indiana Automotive has generated net savings from its recycling efforts. However, what are the economic benefits of their recycling program as you would anticipate them to be, and discuss whether you feel such a commitment to zero-waste would be warranted even if it cost Subaru to sustain the program?

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