There is no question that the TGZ corporation is breaking Canadian customs laws by importing product parts without declaring them to customs. The corporation is using its own employees to unlawfully import product parts without declaring them, which is not only illegal but also unethical. In this scenario, Jack should do the right thing and report the company's illegal acts to the appropriate authorities. Even if it means losing his job, this is the proper thing to do, and every ethical person should do it. Upon his arrival in the Montreal office, Jack gave the package to the regional manager who was expecting it. "You had no trouble with Canada Customs, of course?" asked the manager. Jack explained that he said nothing about the box and was not given any special inspection. He then asked why there was so much concern about getting across the border with the parts if the customs papers had already been processed. The regional manager laughed as he replied: "Is that what Choy (the production manager) told you? I bring these things across all the time. Besides, the duty is almost $500 on these parts. If we claimed everything we imported, we would probably have to raise prices by 5 or 10 percent or transfer service work to our offices in New York. And that would put you out of work! Now don't you worry about a thing." Jack was stunned, but left without showing any emotion. He now realized that his action had violated Canadian customs law and that he may be asked to do so again. Jack decided to call the systems engineer from TGZ's Calgary office with whom he had become friends at the California training sessions. The systems engineer from Calgary said that she did not have any such experience, but her regional manager had just been hired and might not know about the practice. She suggested that Jack shouldn't worry about the incident. She was sure that import duties would be eliminated from these components over the next few years. Jack thanked his colleague for the advice and then sat in his office to decide how to handle this situation.

Answer the following question on the behalf reading of above case study:

1. What should Jack do here? Explain your answer.

2. Would your decision be different if:

a). Most other computer manufacturers also imported a fraction of their components without paying customs duty.

b). The amount of duty owing in Jack's shipment was only $50 rather than $500?

c). This practice is widespread throughout TGZ's Canadian offices and is accepted by senior management in California?