WHAT IF THE FACTS WERE DIFFERENT? Suppose that after Inn Foods learned of the investigation, the company told U.S. Customs and Border Protection that it was working to correct the “errors” and would “advise” as soon as that happened. Would this have undercut the government’s case? Why or why not?

THE LEGAL ENVIRONMENT DIMENSION Inn Foods passed on the cost savings from the lower duties to the growers when it paid them the difference between the understated value of the products and their actual value. Should this in any way absolve Inn Foods of liability for fraud? Explain your answer.

Inn Foods, Inc. (www.innfoods.com), was established in 1976 as a subsidiary of the VPS Companies, Inc. Inn Foods imports frozen fruits and vegetables into the United States from sources worldwide. At its plants in California and Texas, the company blends, custom packages, flavors, and seasons vegetables, pasta, potatoes, rice, fruits, and other food products. Each year, Inn Foods sells more than 157 million pounds of food. Its customers include buyers in the food service industry, industrial food markets, and retail food markets at locations around the globe.