Running head: 3-2 MILESTONE ONE: CASE STUDY ONE 1

Milestone One: Case Study One

Patricia Franks

BUS-206

July 21, 2019

Sharon Ramsay-McLoughlin
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Milestone One: Case Study One

The appropriate court for this lawsuit depends upon several factors. Three important

considerations including the following:

“Personal jurisdiction is where the court has the power over the person being sued.”

(Kubasek, Browne, Dhooge, Herron, & Barkacs, 2017). Generally, where personal jurisdiction

there is a geographical boundary of the state’s borders. In this case we have three states; Florida,

California, and New York.

“Subject matter a court has the power to hear certain cases. It determines which court

which sees which case” (Kubasek, Browne, Dhooge, Herron, & Barkacs, 2017). It determines

whether the case is going o be seen in either federal or state court.

“Minimum contact was established in 1945 by the Supreme Court. All states have their

own requirements but committing acts like tort or business in the states as sufficient to allow the

state to serve a non-resident defendant” (Kubasek, Browne, Dhooge, Herron, & Barkacs, 2017).

In determining the jurisdiction in the case between Mr. Margolin, Novelty Now Inc, and

Chris, Matt, and Ian. We need to look at the minimum contact statutes. If they did then personal

jurisdiction would apply. This case should be seen in a state court.

“Alternative dispute resolution (ADR) may be an option to resolve their dispute. ADR is

the resolution of legal problem through methods other than in a court room. The most common

ones are negotiation, mediation, and arbitration” (Kubasek, Browne, Dhooge, Herron, &

Barkacs, 2017). If all parties can come to solution with their dispute through ADR, they could

possibly be saving not only time that would be tied up in court, but they could also save money.
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“Mediation is an intensive negotiation where both parties select a neutral third commonly

known as the mediator” (Kubasek, Browne, Dhooge, Herron, & Barkacs, 2017). The mediator is

to help facilitate communication and suggest ways to resolve the dispute.

Mediation works to preserve the working relationship amongst the two parties during this

dispute. One of the disadvantages to mediation is that it not always a fair decision. “If one party

have more power over the other party the decision could be unfair and or unequal” (Kubasek,

Browne, Dhooge, Herron, & Barkacs, 2017).

“Arbitration allows for the resolution through a third party that is neutral and not a

member of the judicial system known as the arborator. Arbitrators are more flexible in their

decision making whereas the judge is bound by precedent” (Kubasek, Browne, Dhooge, Herron,

& Barkacs, 2017). However, arbitration also has it disadvantages. Arbitration is losing its

advantages because it is being used more frequently. Individuals are becoming concerned that

using arbitration they are losing some of their civil rights

I myself would choose arbitration. First off it is efficient and less expensive. It is a

private method therefore not going to bring attention to Funny Face. Litigation would public and

most likely harm the reputation of Funny Face causing loss of profits. Also, the decision in the

matter is more than likely going to be better with the arborator than with the judge.

Language on the Funny Face website appears to limit any claim filed to arbitration as a

means of resolving the dispute. Since Funny Face and Novelty Now used PYR which was not

approved by the FDA therefore illegal. The information on the website is null because they are

in breach of contract.

Common law states that a corporation cannot be liable because it does not have a “mind”,

therefore is not a person. “However, corporate executives can be held personally liable for the
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crime under the “responsible corporate officer” doctrine” (Kubasek, Browne, Dhooge, Herron, &

Barkacs, 2017). Even though Chris is the one that told Novelty Now to use the PYR Matt and

Ian both could be charged also.

The primary crime that exists here is fraud. “Fraud is when someone that intentionally

deceives another to cause harm to them. In order to be classified as fraud generally you need to

have the following three elements: 1) materially false misrepresentation made with the intent to

deceive, 2) victim’s reliance of false representation, and 3) damage” (Kubasek, Browne, Dhooge,

Herron, & Barkacs, 2017).

Chris met with Novelty Now Inc. and had them to use the PYR. In doing so he put not

only the customers at risk, but he also put Novelty Now Inc and his own company at risk. Mr.

Margolin has hospital bills that will need to be paid. Also, he is going to have lost wages since

he is a public speaker, it could put his business at risk also.

“The ethical process of decision-making involves consideration of three elements. This

process is also known as WPH process of ethical decision making. When considering this

process, we have to look at Who which are the stakeholders, Purpose is the values, and How is

the guidelines” (Kubasek, Browne, Dhooge, Herron, & Barkacs, 2017). The who in this case is

the customers. The purpose the money that would be saved by using a cheaper product.
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References
Kubasek, N. K., Browne, M. N., Dhooge, L. J., Herron, D. J., & Barkacs, L. L. (2017). Dynamic
Business Law (4 ed.). New York, NY: McGraw-Hill Education.