When executives in charge of San Polegates supermarket chain learned of Delectable offer, they demanded a payment of $250,000 before agreeing to purchase the questionable peanut butter for their supermarkets. The explanation was that their supermarket shelves are already full and that there are costs related to making room for Delectable products. Furthermore, if Delectable wants to place its product on the eye level shelves, that would cost an additional $25,000.

Delectable has also learned that the head of San Polegate security, a highly placed government official, requires a $100,000 payment to assure safe passage of Delectable goods to their intended destinations in San Polegate. If payment is not made, the goods may be lost, perhaps to thieves, calamity, or some other tragedy. Delectable further learns that San Polegate Customs officers regularly receive payments of $500 each to facilitate entry of goods into the country.

Part D Questions (based on Parts A, B, C and D Background Facts):

D1. Advise Delectable on what it should do in response to the situations in Part D Background Facts.

You should refer to what you have learned about law and business ethics in this course. Do any of these situations raise issues of actions that might be considered legal but unethical? Under what conditions is it possible for a business decision/action to be legal but still possibly not be ethical?