You are a director of SeaGold Canning Company. SeaGold’s business is canning tuna and salmon for…

You are a director of SeaGold Canning Company. SeaGold’s
business is canning tuna and salmon for sale to consumers. Its annual revenue
is $575,000,000, 75 percent from tuna sales. SeaGold buys tuna from independent
fishermen whose fishing methods do not always permit them to determine whether
they are catching tuna or dolphins. The result is that many dolphins are
killed. The Society to Protect All Sea Mammals (SPASM) has discovered that
fishermen selling to SeaGold have been killing dolphins and has asked SeaGold
to demand that the fishermen not kill dolphins and to refuse to buy tuna from
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You are a director of SeaGold Canning Company. SeaGold’s
business is canning tuna and salmon for sale to consumers. Its annual revenue
is $575,000,000, 75 percent from tuna sales. SeaGold buys tuna from independent
fishermen whose fishing methods do not always permit them to determine whether
they are catching tuna or dolphins. The result is that many dolphins are
killed. The Society to Protect All Sea Mammals (SPASM) has discovered that
fishermen selling to SeaGold have been killing dolphins and has asked SeaGold
to demand that the fishermen not kill dolphins and to refuse to buy tuna from
fishermen who kill dolphins. If SeaGold does not comply with SPASM’s request,
SPASM will call a press conference to urge consumers to stop buying SeaGold tuna
and salmon

For fishermen to change their fishing methods would result
in SeaGold paying an additional $20,000,000 each year for tuna. If SeaGold
passes the cost on to consumers, the price of tuna will increase to $2.05 per
can from the present $1.95 per can. Since SeaGold tuna now sells for the same
price as other tuna brands, SeaGold expects its sales to fall by 10 percent if
it increases the price of its tuna. What would a rights theorist do? What would
you do as a SeaGold director?

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