This is a case about who Chris Matt and Ian live in California and have a business selling an aftershave lotion called Funny Face over the internet The Novelty Now Inc is the manufacturer and distribution company of Funny Face s product and they are located in Florida Donald Margolin and his company are the plaintiffs Donald Margolis Empire Inc file suit in the state of New York The first type of jurisdiction to consider for this case is Personal Jurisdiction Person Jurisdiction is the authority over a person regardless of their location States have personal jurisdiction over persons within its territory and do not have authority over person outside their territory unless there has been some type of contact In this case meetings took place between Funny Face and Novelty Now Inc but it is not clear where these meeting took place The long arm statute may be considered here because it allows court to have jurisdiction over out of state defendant corporations This may apply since Funny Face sells their product over the internet The next type of jurisdiction is Subject matter which is the authority of a court to hear cases of a particular type or cases relating to a specific subject matter So it depends on the reason for the claim and the argument The federal courts jurisdiction over admiralty bankruptcy federal criminal prosecutions one state sues another state claims against the United States Federal patent trademark and copyright claims and cases involving federal statutes that specify exclusive federal jurisdiction
Since none of these apply in this case it can be a state jurisdiction Next is minimum contacts which is when the United States law decides when it is appropriate for a court in one state to assert personal jurisdiction over a defendant from another state In this case since Funny Face Aftershave is sold on the internet is can be bought by anyone located anywhere Alternative dispute resolution ADR is method of resolving disputes rather than going to court There are different types of ADR the two most common types of ARD are Arbitration and Mediation Arbitration is a type of ADR which requires a neutral party that is usually an expert in the field and can be selected by the parties involved The arbitrator sets up negotiation and settlement meetings Arbitration is the most commonly used alternative dispute resolution The decision the arbitrator makes may or may not be binding depending on the agreement between the parties However it is very difficult to appeal an arbitration ruling is limited This could benefit Funny Face and Novelty Now Inc because arbitration is less costly than going to litigation would be a faster process and the arbitrator has much more flexibility than a judge However arbitration is final and as stated above it is very difficult to change the final decision which could affect one or more parties There are also concern about giving up one's civil rights Another method of ARD is mediation this is when a neutral third party is selected to help facilitate communication and suggest ways for the parties to solve their dispute Kubasek p 72 Mediation is more commonly used between and employer and an employee dispute I do not think mediation would benefit either party in this case because there are two company s involved not an employer and worker Freud is an intentional deception that causes harm to another or a basis for contesting a will if the testator relied on false statements when he or she made the will Kubasek p 181 In this case Chris requested
Novelty Now Inc to substitute PYR a lower cost chemical emulsifier that is not FDA approved rather than use Novelty Now s original formula Chris made this decision on behalf of Funny Face Chris changed the ingredients without knowing what impact it may have on anyone purchasing this product Novelty Now could also be a possible a defendant to this crime because they were aware of the change that was made and also knew PYR was not FDA approve yet they still manufactured the product The savings were made by both Funny Face and Novelty Now The WHP process is an ethical decision making process which is a three step approach that many businesses use for ethical decision making The first step in the WHP process is Who stakeholders who is affected by this decision The second step in the WHP process is Purpose values they are our ideals and morals The third step in the WHP process is How guidelines this is procedures and rules In this case Funny Face and Novelty Now both knew they were using a product that was not FDA approved They didn t know what the consequences would be to someone using this product Does that mean they didn t care Although they did not know exactly what would happen by using the PYR a low cost chemical emulsifier it certainly shows negligence on both their parts and that it was an unethical decision
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