BUSINESS LAW --- For this assignment, you will consider the consequences of acting ethically or unethically. After carefully reading the supplemental ethics materials (Jennings handout), discuss fully the ethical issues related to this case. (1) Categorize the ethical dilemma(s), (2) examine the matter from other perspectives, (3) describe any possible rationalizations, and finally, (4) use at least one of the ethics models to resolve the situation.

Your answer must be typed (double-spaced, font size 12) and between 600 to 1000 words in length.

The Case

You are an executive with a drug company that has recently been selling a highly effective, FDA-approved prescription drug that greatly reduces the pain of migraine headaches. This patented drug is earning a high rate of return for your company and is expected to do so for several years. One of the research scientists comes to you and reports that he thinks the drug may have long-term effects that lead to brain tumors. He says that tests on rats and mice are not conclusive and probably will not be. There will have to be long, expensive tests run on other animals to determine whether this is the case, but he believes that the results are likely to be bad.

He claims that a small percentage of the users will develop tumors after about twenty years. Since no one else is likely to run the tests needed to determine whether this is true, if you do nothing there may be no consequences for twenty years. Since it may not be true, there may never be any consequences. You know that twenty years from now, you will no longer be where you are and, in any event, cannot be held liable for what happens. You can do nothing, order more rat and mice tests, or order expensive testing of other animals. You know that if word gets out about this, sales may drop and your job security may be threatened. Suppose you think tests should be started, but your superiors say no. What should you do? Discuss the ethical issues.