Question

In: Operations Management

You as manager have just returned from vacation and your assistant relates this to you: As...

You as manager have just returned from vacation and your assistant relates this to you:

As you know our senior salesperson, Carla (C), retired last month. Carla’s hobby is fly-fishing. Tamar, our administrative assistant in HR, was in charge of the retirement gifts. Tamar selected a fishing rod, tackle and fishnet along with a week’s stay at a fishing lodge in LaFluer, Canada. As part of the package, Tamar went to a Julia's Gourmet Food Store (J) and asked the clerk for suggestions for a fishing enthusiast. The clerk suggested a box of smoked salmon (as a joke) which was packed by S LLC (S). Tamara liked the idea and checked with the clerk about the salt amount in the preserved fish. She knew that Carla had extremely high blood pressure. The clerk assured her that it would do no harm to such a person. Tamar bought the salmon. Two days after the retirement party and a one month before Carla was to go on the Canadian fishing trip, she tried the salmon. After an hour and eating one portion, she had a near stroke.   The emergency room doctor commented on the high salt level in Carla's blood. She was unable to go on the trip. The cost of the trip was $6,000 and non-refundable. Carla’s hospital and doctor bills totaled $8,800.

Carla had the salmon examined at the University of Massachusetts culinary lab and the results indicated that the salt amount was “in excess of industry standard” for that type of processed fish.

What legal actions exist and what theories support any legal actions in this scenario?

HINT-many warranties

Solutions

Expert Solution

Answer:

The following legal actions exists in this case scenario:

1. Consumer Case over S LLC (S): Carla can file a consumer case over S LLC(S) in the local courts of her state, supporting her claims with the report of by the University of Maschussettes Culinary labs regarding high levels of salt in the product than the industry standards. Wherein, she can claim all the damages occurred to her including all the medical expenses of $8,800 along with the trip expenses of $6,000 and other litigation expenses.

2. Breach of Warranty under Contract Laws over S LLC (S): Tamar (the administrative assistant in HR) can file a case on behalf of Carla alleging Breach of Warranty (Implied Warranty), that the product is not manufactured as warrantied to be complying with the industry standards. Her claim can be supported with the evidence report of University of Maschussettes Culinary labs regarding high levels of salt in the product than the industry standards. She can claim the cost of full medical damages of $8,800 and full trip amount of $6,000.

3. Claim of indemnification under Contract Laws over S LLC (S): Tamar (the administrative assistant in HR) can also claim indemnification on behalf of Carla, the indemnification is provided to the consumers under the contract between the manufacturer and the buyer while buying a product. She can claim the cost of full medical damages of $8,800 and full trip amount of $6,000 on behalf of Carla as she was the one who bought such product and gifted her.

4. Misrepresentation over Julia’s Gourmet Food Store’s clerk: Legal action of Misrepresentation case over Julia’s Gourmet Food Store’s clerk by Tamar (the administrative assistant in HR) seeking medical damages to Carla.

5. Protection under US Food and Drug Administration and HACCP: Claim can be filed against the manufacturer of the Salmon under the provisions of FDA and HACCP. Full coverage of Medical damages can be asked.

The Theory is Theory of Consumer Protection which supports under this legal scenario. According to this theory, the manufacturer has the legal liability for product disappointment if the consumer has enough evidence against the opposite party.


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