Two partners in Hempline Inc. have taken advantage of legislation under which Health Canada was able to grant permits that allowed for the cultivation of hemp, an illegal crop, on an experimental and non-commercial basis. As the next growing season approached and no changes in legislation had occurred, the partners had to decide what action to take with respect to the future of Hempline. Despite increased political acceptance, the future of hemp in Canada remained uncertain. The case introduces the relationships between changes in social values and changes in the law, and the impacts of these on investment and management decisions. It also introduces the problem of evaluating business opportunities created by technological changes. Hempline had to evaluate how best to utilize its first-mover advantage within a future hemp production industry.
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