Dynisha Taylor: BUS 206 Case Study One
The following negligence case between Donald Margolin Empire Inc vs Novelty Now
Inc., Chris, Matt and Iran. Mr. Margolin purchased an online product, sold by the three men
company called Funny Face in contract with Novelty Now, that caused discoloration on his face.
Mr. Margolin is seeking medical costs, compensation for the damage to his face and business
reputation. It was discovered that an ingredient not approved by the FDA caused Mr. Margolin
discoloration to his face that was used in substitution to try and increase profit.
The appropriate court for this lawsuit depends on several factors of which court has
jurisdiction. Personal jurisdiction is when a court can have jurisdiction over a party within the
lawsuit that resides in a certain geographic area. Mr. Margolin resides in New York which is
where he filed his lawsuit while the defendants live in California and Novelty Now has a contract
that all disputes must be brought to the state of Florida. Subject matter jurisdiction allows a court
to hear certain cases like the United States has state and federal court systems subject matter will
determine which court system. There are two different states in this case and the court will have
to decide who has jurisdiction. The case was filed in New York where Mr. Margolin lives, but
Funny Face company has a contract with Novelty Now which has a contract that all disputes be
handled in the state of Florida. Minimum contact is when a court determines personal
jurisdiction over a defendant from another state. This will help Mr. Margolin case be heard in
New York instead of Florida.
Alternative dispute resolution (ADR) maybe an option to resolve this dispute. ADR is a
way to resolve legal problems without going to trial. The primary forms of ADR are negotiation,
Dynisha Taylor: BUS 206 Case Study One
mediation, conciliation and arbitration. Courts are supportive of ADR because it gives another
way to handle disputes between parties and stop the overwhelming court dockets.
Language on the Funny Face website appears to limit any claim filed to arbitration as a
means of resolving the dispute. The advantages for both parties involved is ADR are cost
efficient and the resolution is faster than a trial. Businesses will like to avoid the uncertainty of a
jury deciding its outcome, ADR gives each party more control over the conclusion. Another
advantage of ADR for the business is that they are confidential. During an arbitration the
arbitrator can give a decision with little explanation which will lead to the losing party being
unsatisfied. Funny Face and Novelty Now needs an arbitration to protect their business and avoid
other customers finding out about the lawsuit. Disadvantages to an ADR are unlike litigations
during a mediation a party can decide to leave, and it lacks procedural rules that protect each
party. Mediation may not be good for either party in this case because they may not be able to
Chris, Matt and