Your company has sold critically important equipment to a US car manufacturer that is building a plant in Brazil. Part of your contract states that the equipment has to be on-site in Brazil by a specific date. Your company has produced the equipment and shipped it in a timely fashion. However, when the containers are unloaded at a port in Brazil they are not being processed. As time passes you are risking that the equipment is not delivered on time and your customer will charge you significant penalties for late delivery. Your freight forwarder and its agents indicate that the reason for the delay is that the manager of the port facility is holding up the shipment but that this can be resolved quickly through a bribe. What will you do?

Discuss with each other the options you have to get the shipment out of port into its final destination in Brazil in time to meet the deadline that you have been given by your customer.

Agree or Disagree with the Below Statement and WHY?

I would not give in to the demands of a bribe from the port manager. In this situation, I would consult my attorneys to find out what options we have. Since it is an international dilemma and laws are different, I would look into the legalities of this situation that concern the United States and Brazil. If there is anything that prohibits individuals from committing a crime of bribery with shipments, I would report it to local and federal agencies so they can take the appropriate approach.

While authorities are investigating the issue, I would reach out to the car manufacturer we are contracted with, let them know of the situation, and request an extension on the deadline. Communicating with the car manufacturer will help in easing the penalties the company would face. Trying to avoid breaching any part of the contract, I would look for ways to help remedy the situation without partaking in any illegal activities. The manufacturer has built a plant in the country and might have some connections to help fix the issue we are having at the port. Revisiting the contract will also help us understand what we can work through and what we need to adjust. The parts made it to Brazil, but a corrupt manager has held the product and kept it from reaching its final destination. I would also speak with the freight forwarder to see if they have any insight and if this has happened before to other suppliers.