Problem
Social, Policy, and Ethical Considerations
• Does Ted have an ethical responsibility to inform Karla of the opportunity to renew the lease?
• Does it matter that the renewal offer for the long-term lease was initially raised in a dinner conversation between Ted and James?
• Should Ted be free to sever relations with Karla with regard to the property? Consider that Ted has man- aged the property and no longer needs Karla's capital. What competing social values does his dilemma involve?