Prompt: Imagine yourself as a paralegal working in a law office that has been ta
ID: 2476381 • Letter: P
Question
Prompt: Imagine yourself as a paralegal working in a law office that has been tasked with reviewing three current cases. You will review the case studies and compose a short report for each, applying your legal knowledge and understanding of the types of business organizations. In each 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 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: A. Apply the rules of jurisdiction to the facts of this case and determine what jurisdiction(s) would be appropriate for Margolin’s lawsuit against Funny Face and Novelty Now, respectively. Consider federal court, state court, and long arm principles in your analysis. B. Assume all parties agree to pursue alternative dispute resolution (ADR). Analyze the advantages and disadvantages of two types of ADR appropriate for this case. Be sure to define the characteristics of each in your answer. 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 whether or not corporations and/or corporate officers may be held liable for criminal acts. E. Identify, per the 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 for your conclusion. G. Use the WPH process of ethical decision making to evaluate any ethical issues within the case study.
Explanation / Answer
A Legally, a suit can be filed in a court where dependent resides or establishes his business. In this case, Novelty Now Inc established his business in Florida, so Florida court only can hear a case against Novelty Now Inc, but in some exptional cases, a Plainttiff can file a suit in his place of court against dependent if the dependent sells the goods or supplies the goods on mail order or through internet service. In the given case, Margalin lives in New Yark and also doing business in New Yark. Margalin purchased 'Funny Face' through internet and got damage of his skin by using Fancy Face product produced and supplied by Novelty Now Inc. Hence, the suit filed by Margalin in New Yark is maintainable and valid jurisdiction agaisnt Novelty Now Inc. State court i.e New Yark court can hear the case.
B. Instead of going to a formal court, parties, in this case may resolve their dispute through Alternative Dispute Resolution (ADR) which have the following advantages and disadvantages:
Advantages:
1. ADR involve less cost than formal court which require lot of money to spend as lawyers fees, court fees, and maintenance expenses of the case
2. ADR takes very less time to resolve the dispute as parties can freely discuss the matter and arbitrators will mediate them in the settlement of the dispute, but court takes much time to resolve the case as it is overburdened with many cases.
3. Invovement of the parties in ADR is more active, so they can implement their settelment rules with whole heartedly without fail
4. ADR is more flexible, so parties can sit to settle their dispute any time they wish, so no restrictions
Disadvantages:
1. In ADR process, rules regarding law may not be followed, it is more informal, no sanctity, supoose parties may not satisfy,again they may move to the court
2. Some formal arbitration hearing can sitll be complex and expensive depending on the subject of dispute
3. In ADR, the compensation awarded may not be sufficient, as parties are convinced to accept a low award
4. In ADR, there is no posibility of geting expert justice which is posible in formal court as judge is expert in law, which is not with the case of ADR
C. ADR is really a good technique to resovle dispute in a quickest manner by sepnding little amount and parties are freely express their view in ADR,but it may not possible in formal court. In the given case, Margalin may prefer filing a suit in formal court rather than ADR as naturally he wants to get more damage through court but it is not possible through ADR. But, Novely Now and other dependents may prefer ADR as they want to satisfy the Plaintiff Margalin by paying a very little amount as damages by convencing Margalin through mediators. They do not want to go to Court as it involves reputation of their business.
D. With respect to crimes regarding negligence, fraud etc. corporations and corporate officers are liable to victims or effected parties, they can be sued in a court of law for thier criminal activities as they also are citizens in the eye of law.
E. In this case, Novelty Now Inc and others viz, Chris, Matt and Ian involved a potential criminal activity ie. fraud which is a criminal act under criminal law. They have done it wilfully to make windfall profits by cheating customers, for which they should be punished by the court not just by awarding damages to Morgalin.
F. In the given case, Novely Now and Chris committed a wilful fraud and caused damage to Morgalin, so they are liable for criminal act which may result in imposing fine and imprisonment upto 5 years or both shall be imposed in addition to heavy damage to Morgalin
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