Funny Face Case Essay
Personal jurisdiction “is defined as the power of the court to hear and determine a lawsuit involving a defendant having some contact with the place the court is located” (Kubasek, N. 2012). The business owners of this case, Chris, Matt, and Ian, all live in California. They sell an aftershave lotion called Funny Face over the Internet, and contract this business through a company called Novelty Now Inc. that is based in Florida. The company Funny Face committed fraud by substituting a lower cost chemical emulsifier to increase the profit margin. This chemical is not FDA approved. A CEO named Donald Margolin bought a bottle of Funny Face on the Internet after hearing it marketed. This product turned Mr. Margolin’s face a permanent shade of blue and he filed a suit in the state of New York. The problem with this case is that the parties are from two different states. Being from two different states, the case could be brought in federal and state court. The website for Funny Face states that anyone who purchases their products can not take them to court and all disputes must be brought in the state of Florida. Due to “the defendants not living in New York, they could argue that the State of New York did not have
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2012). Chris, Matt and Ian could be subject to corporate criminal liability. As stated previously, Funny Face committed fraud by substituting a lower cost chemical emulsifier, which is not FDA approved. Although Funny Face states on their website that Chris, Matt, and Ian can not be taken to court they still committed fraud by selling a product with ingredients not FDA approved. This product is sold on the Internet, meaning any one in any state can obtain it, which also means long arm statues will direct a lawsuit. If Chris, Matt and Ian did not want to be filed against they should have stated the FDA did not regulate their
2012). Chris, Matt and Ian could be subject to corporate criminal liability. As stated previously, Funny Face committed fraud by substituting a lower cost chemical emulsifier, which is not FDA approved. Although Funny Face states on their website that Chris, Matt, and Ian can not be taken to court they still committed fraud by selling a product with ingredients not FDA approved. This product is sold on the Internet, meaning any one in any state can obtain it, which also means long arm statues will direct a lawsuit. If Chris, Matt and Ian did not want to be filed against they should have stated the FDA did not regulate their