Funny Face Case Study

Superior Essays
The case presented is that of an internet company called Funny Face located in California. It was established by Chris, Matt and Ian who are in the business of selling aftershave lotion online. Chris asked the manufacturing company Novelty Now, established in Florida, to substitute a non-FDA approved ingredient (PYR) to the original formula. Donald Margolin, a customer from New York, purchased this after shave and by using it, his face has adopted a permanent shade of blue. We will evaluate which jurisdiction this case falls under, as well as touch base on alternative dispute resolutions (ADR), the type of crime the companies incurred in when they switched the ingredients, the possible liabilities they can face and ethical principles that …show more content…
Three important considerations include the following: Personal jurisdiction which is also known as “in personam”, is the power of a court to hear and determine a lawsuit involving a defendant by virtue of the defendant's having some contact with the place where the court is located. (Personal Jurisdiction. N.d.) It applies to the case of Funny Face, Novelty Now v. Margolin, because the lawsuit was filed in New York, but Funny Face is located in California whereas Novelty Now is located in Florida. The next factor to consider is the subject matter jurisdiction which is a courts power to hear certain kind of cases. Depending on the type of lawsuit it could be either a: Federal Jurisdiction- examples of this are when a state sues another state or a federal criminal prosecution case; or state Jurisdiction which entails anything that doesn’t fall under federal jurisdiction. Examples are adoption and divorce cases. The last factor to look at is the concurrent federal jurisdiction which applies when both federal and state have jurisdiction over a case. Most popularly used when diversity-of-citizenship exists. For example, the plaintiff does not reside in the same state as the defendant where the case is present. It applies to the case in study in regards of which jurisdiction Margolin’s lawsuit is best suited …show more content…
ADR is when legal disputes are resolved through methods other than litigation. Some of these methods are “negotiation, mediation, arbitration, summary jury trials, minitrials, neutral case evaluations, and private trials" (Kubasek 68). Two examples of ADR’s will be discussed. The first one is arbitration which is selecting a neutral third party to help resolve the dispute outside of the judicial setting. This third party could be composed of one or multiple members. Arbitration is beneficial in instances for which a solution needs to be reached in a short period of time. Or for when the parties involved in the dispute, prefer a subject-matter-expert arbitrator. The main disadvantage of arbitration is the loss of appellative rights. The final ADR to discuss is a Mini-trial. This one also involves a neutral third party and it is similar to arbitration. It consist of lawyers from the disputing businesses presenting their case. Some advantages of this method is that since it consist of representatives of the disputing businesses, they have authority towards signing a settlement agreement/contract. Moreover, cost wise it is less expensive than arbitration. A disadvantage of a mini-trial is that if no agreements is reached, the time, money and effort was just a delay in the possibility of having reached an agreement through

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