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.

Apply at least three guidelines of ethical decision-making to evaluate ethical issues within the case study.

Answer 1

SOLUTION:

(A) Caveat Emptor always buyer should be Beware first thing the product as been advertised in radio, newspaper and internet are all offers only. Once you are going to accept the offer you should always know about the product knowledge. Here the basic ingredient as been substituted which is not an approved one too for cost reduction purpose. Manufacturers can manufacture their products within the budget only.

(B) Void ab Initio PYR is not a FDA approved one. In this case product raw material is not eligible one. so here chris, Matt and ian they are manufacturers only. Once the product came to market the marketing company should know the product knowledge.

(C) So here we can say the person Mr.Donald Margolian cannot claim anything from the contracted company Novelty Now Inc and Chris, Matt and Ian and if they both wishes they can pay as compensation of their own.