BUS 206 Final Project Imagine yourself as a paralegal working in a law office that has been tasked with reviewing three current cases. You will review the case studies and compose a
short report for each, applying your legal knowledge and understanding of the types of business organizations. In each of the three reports, you will focus on
areas of law covered in this course. Case Study One focuses on the legal system, criminal law, and ethics. Case Study Two concentrates on contracts and landlord-
tenant law. Case Study Three involves environmental law and business organizations.
Case Study One BUS 206 Final Project
Chris, Matt, and Ian, who live in California, have decided to start a business selling an aftershave lotion called Funny Face over the internet. They contract with
Novelty Now Inc., a company based in Florida, to manufacture and distribute the product. Chris frequently meets with a representative from Novelty Now to
design the product and to plan marketing and distribution strategies. In fact, to increase the profit margin, Chris directs Novelty Now to substitute PYR (a low-
cost chemical emulsifier) for the compound in Novelty Now’s original formula. PYR is not FDA approved. Funny Face is marketed nationally on the radio and in
newspapers, as well as on the web and Facebook. Donald Margolin, a successful CEO and public speaker, buys one bottle of Funny Face over the internet. After
he uses it once, his face turns a permanent shade of blue. Donald Margolin and his company, Donald Margolin Empire Inc., file suit in the state of New York BUS 206 Final Project
against Novelty Now Inc. and Chris, Matt, and Ian, alleging negligence and seeking medical costs and compensation for the damage to his face and business
reputation. It is discovered that PYR caused Margolin’s skin discoloration. The website for Funny Face states that anyone buying their product cannot take Chris,
Matt, and Ian to court. Novelty Now’s contract with the three men states that all disputes must be brought in the state of Florida.
Specifically, the following critical elements must be addressed: BUS 206 Final Project