Chris, Matt, and Ian, who live in California, have decided to start a business s
ID: 429094 • Letter: C
Question
Chris, Matt, and Ian, who live in California, have decided to start a business selling an aftershave lotion called Funny Face over the internet.
They contract with Novelty Now Inc., a company based in Florida, to manufacture and distribute the product. Chris frequently meets with a representative from
Novelty Now to design the product and to plan marketing and distribution strategies. In fact, to increase the profit margin, Chris directs Novelty Now to
substitute PYR (a low-cost chemical emulsifier) for the compound in Novelty Now’s original formula. PYR is not FDA approved. Funny Face is marketed nationally
on the radio and in newspapers, as well as on the web and Facebook. Donald Margolin, a successful CEO and public speaker, buys one bottle of Funny Face over
the internet. After he uses it once, his face turns a permanent shade of blue. Donald Margolin and his company, Donald Margolin Empire Inc., file suit in the
state of New York against Novelty Now Inc. and Chris, Matt, and Ian, alleging negligence and seeking medical costs and compensation for the damage to his face
and business reputation. It is discovered that PYR caused Margolin’s skin discoloration. The website for Funny Face states that anyone buying their product
cannot take Chris, Matt, and Ian to court. Novelty Now’s contract with the three men states that all disputes must be brought in the state of Florida.
Specifically, the following critical elements must be addressed:
Apply what you have learned about ADR, which type would each party (Funny Face, Novelty Now, and Margolin) prefer and why?
D. Apply concepts of criminal law and discuss whether or not corporations and/or corporate officers may be held liable for criminal acts.
Explanation / Answer
here mususing the guidelines and making drugs with the inputs of not aproved inputs by PYR is not acceptable. here Funny face and Novelty Now has to be face the leagal problems and Margolin should compensated for this damage.
corporate officers are liable to these types of cases and they are the resopnsible persons. because they are the higher authorities who approves the business strategies and final products. so, they should be answer for all the allegations and results of the decisions.
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