Legal Liability and Regulatory Challenges: Robins & Robins Case Analysis

Case study on legal liability and regulatory issues in business.

David Miller
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Legal Liability and Regulatory Challenges: Robins & Robins Case Analysis1. List any bases Robins & Robins could sue Casings, Inc., under contract theory ONLY for thedamages caused by the explosives in their drugs, over and above the cost of the capsule shells.(short answer question)Ans:It is very likely that the contract provision in section 14B.2a would be upheld In this case providedthat the contract was not the product of unconscionabiity, misrepresentation, or fraud. Robins &Robins could bring contract actions for breach of warranty depending on the other terms of thecontract. Also, Robins might also recover based on a theory of equity based on the extraordinarynature of the damagescaused. A contract is a legally enforceable agreement between two or more parties with mutualobligations. The remedy at law for breach of contract is "damages" or monetary compensation. Inequity, the remedycan be specific performance of the contract or an injunction. Both remediesaward the damaged party the "benefit of the bargain" or expectation damages, which are greaterthan mere reliance damages, as in promissory estoppels. We have the fact that when Robins &Robins' contracted with Casings, Inc., they made sure to state in the section 14B.2a that "Theremedy for defects in supplies shall be limited to the cost of the parts supplied". Vitiating factorsconstituting defenses to purported contract formation include: Unconscionability and duress.Casings Inc. has supplied the capsule casings for the medication pills tainted with small particles ofplastic explosive because of which the final product sold by Robins and Robins were found to be in adefective condition unreasonably dangerous to the user or consumer. The fact that Casting productsare damaged makes the contract's lopsidedness unconscionable. Robins and Robins has a right tomitigatehisdamages.Alsowecanconsiderundueinfluence;unconscionability;misrepresentation/fraud in this case and Robins & Robins could sue Casings, Inc on the basis ofundue influence; unconscionability; misrepresentation/fraud.2. TCO B. The FDA discovers that, during the public comment process, Robins & Robins bribed oneof the members of the administrative panel that decided to pull the rule from consideration. Themember of the panel was removed and is being charged criminally. As a result, the FDAimmediately implements an emergency order that puts into effect the “tracking bar” requirementand makes the rule retroactive, but only to Robins & Robins. Provide two arguments Robins &Robins can make to have the rule determined to be invalid under the Administrative ProceduresAct. Explain your answer. (Points : 30)Ans:

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Civil Law

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