Milestone
Overview: Business law impacts oureveryday lives, both personally and professionally. Businesses entercontracts, manufacturegoods, sell services and products, and engage in employment and laborpractices-activities that must all adhere to certain laws and regulations. Recognizing and evaluating legal issues is a fundamentalskillthat will help you navigate commercial relationships and avoid potential problems in the business world.
Prompt: Imagine yourself as aparalegal working in a law office that has been tasked with reviewing three current cases. You willreview the case studies and compose a short report for each, applying yourlegal knowledgeand understanding of the types of business organizations. In e ach of the three reports, you will focus on areas of law covered in this course. Case Study One focuses on the legal system, criminal law, and ethics.
Case Study One: Chris, Matt, and Ian, who live in California, have decided to start a business selling an aftershave lotion called Funny Face overthe internet. They contract with Novelty Now Inc., acompany based in Florida, to manufacture and distribute the product. Chris frequently meets with a representativefrom 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(alow-cost chemical emulsifier) forthe compound in Novelty Now's original formula. PYRis not FDA approved. Funny Face is marketed nationally on the radio and in newspapers, as well as on the web and Facebook. Donald Margolin, asuccessful CEO and publicspeaker, 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 forthe damage to his face and business reputation. It is discovered that PYRcaused Margolin's skin discoloration.
The website for Funny Face states that anyone buying theirproduct 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:
A. Apply the rules of jurisdiction to the facts of this case and determine what jurisdiction(s) would be appropriatefor Margolin's lawsuit against Funny Face and Novelty Now, respectively. Consider federal court, state court, and long arm principles in youranalysis.
B. Assume all parties agree to pursue alternative dispute resolution (ADR). Analyze the advantages and disadvantages of two types of ADRappropriate for this case. Be sure to define the characteristics of each in youranswer.
C. Applying 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 whetherornot corporations and/orcorporate officers may be hel d liablefor criminal acts.
E. Identify, perthe classification of crimes in the text, any potential criminal acts by Funny Face and/or Novelty Now.
F. Assume the use of the emulsifier PYR, at the direction of Chris, is a criminal offense. Apply concepts of criminal law and discuss the potential criminal liability of Funny Face, Chris, Matt, Ian, and Novelty Now. Include support foryourconclusion.
G. Apply at least three guidelines of ethical decision-making to evaluate ethical issues within the case study.
Rubric
Guidelines for Submission: Yoursubmission should be aone- to two-page Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Citations should be formatted according to APA style.