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Desperate Air Corporation Case Summary

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Desperate Air Corporation (DAC) flies routes along the U.S. East Coast. DAC acquired a number of hotels and undeveloped properties five years ago as part of a short-lived diversification strategy (Halbert & Ingulli, 2008). DAC has previously experienced considerable losses such as cash flow and bankruptcies. DAC owns a large, undeveloped oceanfront property on the east coast of Florida, which is up for sale.

Brenton Williams is the CEO of Desperate Air Corporation. George Nash is vice president of real estate. Williams has assigned Nash to find a buyer for the property. The corporation currently is in desperate need of the money, so the property has to be sold. After some searching Nash a good prospect for the property, he finds Fledgling Industries who is a new developer for retirement villas. Fledgling is interested in a property for a retirement condos that included walking trails and recreational facilities. DAC conducted an Audit on the property and found no problems, a fledgling representative also found no problems. However a friend of Nash walked the trails after a rumor and found buried metal containers marked DANGER/BIOHAZARD, RADIOACTIVE MEDICAL WASTE. …show more content…
He intended to tell Williams, but before mentioning it, Williams interrupted and mention that the sale needed to happen as soon as possible. Nash needs to think about what options he has regarding disclosing the defect to the property owned by Desperate Air. Even though he might never do future business with Fledgling, Fledgling can turn around and make things difficult for Nash. For example he could expose him and pass the word around that Nash screwed him over on the deal. If he does not tell Williams about the situation, it could harm future business with other clients. If other clients find out about the situation it could be difficult to trust Nash and Desperate Air

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