Former President Suharto of Indonesian once famously dismissed the concern over his country’s corruption by saying: Well you come out here from Washington with these high ideas to tell us….
What issues are raised in this case? What advice might you give?
A soft drink manufacturer entered into an exclusive dealership agreement with a large university whereby the manufacturer would supply its product line to the university cafeteria, coffee shop and snack bar. The manufacturer would also supply soft drink dispensing machines in all campus residence and classroom buildings. The agreement was to run for a period of five years, and provided that the university would not permit any soft drinks to be sold on campus except those of the manufacturer. In return, the university was paid a large up-front cash payment, and entitled to a percentage of the sales of all of the soft drinks sold on campus. A competitor of the soft drink manufacturer consults you for your opinion on this agreement between the manufacturer and the university. What issues are raised in this case? What advice might you give?