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Question - X' Ltd. was fined for exporting computer waste to a developing country. Exporting waste is not illegal. However, federal hazardous waste management rules require accurately manifesting the waste shipment, notifying the Environmental Protection Agency (EPA) of their intent to export the waste to the country, and obtain the importing country's government's consent. The US Environmental Protection Agency (EPA) has fined 'X' Ltd a total of US$91,600 for attempting to illegally export computer waste to a developing country. 'X' Ltd has also been ordered to properly dispose of 2000 discarded computer monitors. US Customs and Border Protection agents stopped the shipment, which was declared as "scrap plastic," at the Port of Seattle in early December. The company was accused of violating several federal hazardous waste management rules. Many televisions and computer monitors use cathode ray tubes (CRTs) containing lead, cadmium and arsenic that can leach into groundwater if not discarded properly, according to the EPA.
Required -
1. Discuss in detail two impacts from the legitimacy perspective of the above case on 'X' Ltd.
2. Explain the company's two possible reactions to this situation in terms of legitimacy theory.
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