Your company, Ajax Pharmaceutical, based in New Jersey, is approached by an agent for a company that...

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Your company, Ajax Pharmaceutical, based in New Jersey, is approached by an agent for a company that has offices in Egypt and Jordan about participating in several joint ventures in the Middle East and Asia. The agent inquires about the status of your investment in Israel. You currently have an offer from a newly formed Israeli investment group to purchase your 30 percent share of Drugisco, an Israel-based company. How do you respond? What is your legal obligation? What other information do you need to answer the agent’s question? He also asks about your ability to ship certain chemicals that are controlled. Do you have any obligation to report this inquiry? You initially ship the requested items to Japan. You discover during a late-night meeting in a karaoke bar that these items went to a middleman and are now headed to Sudan. Do you have any legal responsibility? Ethical responsibility? What managerial controls can you implement to reduce the likelihood of this happening in the future?

David · Accepted Answer

Export controls over Goods:
The U.S government restricts exports of items involving technology and software. The reason for the restriction is the use of technology for military and other defense activities.
If the sale of such goods causes a security threat to the company then the government can impose restrictions on exports.
Restrictions on exchange of information:

Your company, Ajax Pharmaceutical, based in New Jersey, is approached by an agent for a company that has offices in Egypt and Jordan about participating in several joint ventures in the Middle East...

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