2018_FlipBook_Kubasek_Dynamic Business Law_5e

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P A R T 1 THE LEGAL ENVIRONMENT OF BUSINESS Acne Medication and Gastrointestinal Injury Since 1999, Kamie Kendall had experienced ongoing abdominal pain, and she was eventu- ally diagnosed with ulcerative colitis and irritable bowel syndrome (IBS). Although Kendall had been taking an acne medication, Accutane, since 1997, the medication's warnings did not mention IBS or ulcerative colitis and, therefore, Kendall had never suspected that her ongoing illness was a result of the medication. Then, in April 2004, Kendall's grandmother informed her of a lawyer's television advertisement linking Accutane to ongoing IBS. On December 21, 2005, Kendall filed a lawsuit against Hoffman-LaRoche, the manufacturer of Accutane, alleging that the company was liable for her injuries because the medication's warnings failed to disclose the risk of developing IBS. Kendall argued that, instead, the medication's warnings focused on pregnancy and sui- cide. Further, although the medication warned against "abdominal pain," there were no specific warnings, or mention on the consent form, of risk of IBS or colitis. Hoffman-LaRoche moved to dismiss this lawsuit, arguing that the statute of limitations had expired and that Kendall's suit was untimely. 1. When is it usually considered untimely for plaintiffs to file failure-to-warn lawsuits? 2. If you were in charge of manufacturing acne medication, would you consider it your ethical obligation to list all potential illnesses that may result from your product? The Wrap-Up at the end of the chapter will answer these questions. 2-1 Distinguish between business ethics and the social responsibility of business. 2-2 Recognize the relationship between business law and business ethics. 2-3 Analyze business decisions using the WH framework. 2-4 Appendix 2A–What are the theories of business ethics? L E A R N I N G O B J E C T I V E S Business Ethics 2 C H A P T E R C A S E O P E N E R ©Creative Hat/Shutterstock

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