BUS 206 7-2 Final Project Submission: Case Study Analyses
Dawn MacDonald
Southern New Hampshire University
,BUS 206 7-2 Final Project Submission: Case Study Analyses
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There are three case studies that have been discussed throughout this term. Case Study
One focused on the legal system, criminal law, and ethics in business decision making. Case
Study Two focused on landlord tenant matters and different types of contracts. Case Study Three
concentrated on the various types of business organizations and how they play a part in people’s
rights and responsibilities.
In Case Study One, Margolin Empire Inc. against Novelty Now and Funny Face, many
critical elements are discussed. Those critical elements include: rules of jurisdiction, types of
alternate dispute resolutions, advantages and disadvantages of ADR, concepts of criminal law,
potential criminal liability, and ethics in decision making.
Personal jurisdiction is the power the courts have over the cases of the said parties
whereas subject-matter jurisdiction is another type of jurisdiction where the court has power over
the type of case presented to it. In the case of Margolin Empire Inc. against Novelty Now and
Funny Face, the courts have personal jurisdiction over Novelty Now and Funny Face. The court
will likely determine that sufficient minimum contacts have been met by showing how Chris,
who works in California, directed Florida’s Novelty Now in using a non-FDA approved
substitute for the product over the internet along with how Margolin’s claim results from
activities held from forum-related activities. A minimum contact is a term that is used to help
determine when it is appropriate for a court in one state to assert personal jurisdiction over a
defendant from another state (Kubasek, 2015). The elements of minimum contacts are whether
or not the defendant took actions purposely directed towards the forum state. Funny Faces
actions where directed over the internet (or the forum) against others in various states, which
would conclude the factors were met. Since the aftershave lotion product is marketed nationally,
both federal and state jurisdiction could be considered because the subject matter falls in both
, BUS 206 7-2 Final Project Submission: Case Study Analyses
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categories. Subject-matter jurisdiction could not be waived in this case because the parties can
not agree what state to try the case in.
Next, it would be in the best interest for the parties to decide the best way to come to a
resolution. Alternative dispute resolution (ADR) technique offers benefits by using different
methods then litigation such as negotiations, mediation, arbitration, and private trials, which
provide faster and cheaper results (Kubasek, 2015). The National Arbitration Forum
summarized the average timeframe from the beginning process to judgment through litigation
was 25 years and could cost an average of $3.5 million for each party (Kubasek, 2015).
Resolving the case earlier through an ADR would save a lot of money as well as avoid a
tarnished reputation from the public eye. Donald Margolin, who is a well-known CEO and
public speaker would benefit by avoiding humiliation from a public. Using an ADR like a
private trial would allow him to minimize any damages that might occur to his reputation and
permit the parties to request a trial before a judge if unsatisfied. All parties could also benefit
from an early neutral case evaluation, which allows the parties to select a third neutral party and
clarify their positions (Kubasek, 2015). The neutral person evaluates the strengths and weakness
of the case, which gives them the information to reach a settlement (Kubasek, 2015). Selecting
the best alternative dispute resolution for this case could benefit all of the parties involved.
The language on the Funny Face website appears to limit any claim filed to arbitration as
a means of resolving the dispute. Arbitration is where a neutral third party seeks a resolution
outside a court setting (Kubasek, 2015). Since the non-FDA product made Mr. Margolin’s face
blue, he would benefit from choosing arbitration so he can select an expert in the subject matter.
On the other hand, arbitration could be looked at negatively by Mr. Margolin, Funny Face, and
Novelty Now because of the lack of confidentiality.