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0324595727_147840

0324595727_147840 - FBLEC-2e Case Problem with Sample...

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FBLEC-2e Case Problem with Sample Answer Chapter 3: Ethics and Business Decision Making 3.5 Case Problem with Sample Answer Eden Electrical, Ltd., owned twenty-five appliance stores throughout Israel, at least some of which sold refrigerators made by Amana Co. Eden bought the appliances from Amana’s Israeli distributor, Pan El A/Yesh Shem, which approached Eden about taking over the distributorship. Eden representatives met with Amana executives. The executives made assurances about Amana’s good faith, its hope of having a long-term business relationship with Eden, and its willingness to have Eden become its exclusive distributor in Israel. Eden signed a distributorship agreement and paid Amana $2.4 million. Amana failed to deliver this amount in inventory to Eden, continued selling refrigerators to other entities for the Israeli market, and represented to others that it was still looking for a long- term distributor. Less than three months after signing the agreement with Eden, Amana terminated it without explanation. Eden filed a suit in a federal district
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