Case Study One: Chris, Matt, and Ian, who live in California, have decided to st

Question

Case Study One: 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.

*****

Define fraud and why or why not one or more parties might be held responsible for this crime.

Can you identify any other defendants and/or possible crimes in the story? Elaborate and explain*****

Explanation / Answer

here there are more than one responsible parties in this allegation. the first one is Funny face and its partners. all the three are responsible to this, they should equllay sharing the loss also, even the remaining two does not involve in it. beacuse as a owners they have to know what is going on and how the business is carrying.

and the second party is Novelty Now, because they crossed and violated the basic rules and pricnciples in the process. they should not use PYR to make the lotion, they utilized it wantedly. ofcourse, they may get some aditional returns for this, but they also liable to this action.

if atleast one party is sincere at his task, this fraud may not happen. so, here the both parties are answerable and liable to this crime.

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