In 1975, Acme Markets, Inc., a large national food chain and its CEO, John R. Park, were convicted of keeping food sold in interstate commerce in a rodent-infested company’s warehouse, in violation of federal regulations . According to the responsible corporate officer doctrine, the court found Park severely liable for the unsanitary circumstances of this corporation, as this offense involves protecting the public health and welfare of patent dangers. Park was charged guilty of violating 301(k) of the Food, Drugs and Cosmetics Act (FDCA), which protect consumers against adulterated and misbranded foods and drugs.
Park pleaded guilty admitting that he was “responsible for the entire operation of the company” and that as one of many stages of the company it was being assigned to “dependable subordinates”. However, the court established that vicarious criminal liability is extensive to those corporate officers who have the ability to avoid or correct the illegal activity. Further, under the responsible corporate officer doctrine (RCO), the court may impose criminal liability on a corporation officer regardless of whether he participated in, or even knew about a given criminal violation. In Park’s case, he was in fact guilty since he was responsible for the corporation. The government recognized a prima facie against him, as they had evidence that the defendant was put on notice of this violation of the law committed by his corporation, and he in fact failed to prevent the violation of the law, and consequently failed to correct the criminal activity. Park could have evaded the liability by demonstrating that he was powerless to avoid or correct the criminal act, but the failed to do it as well.
Under the responsible ...
... middle of paper ...
...he could have avoided the illicit act, and he did not fixed or corrected the violation.
The negligence and ignorance of John R. Park, brought him several problems that he could avoided only if he had taken action beforehand. Park, had an obligation to preserve sanitary quality of the foods and products stored in the organization’s warehouses, but evidently, the food and merchandised stores in the warehouse was in unsanitary conditions. Subsequently, he was notified with anticipation about the rodent infestation and contamination in one of his warehouses, he was then, aware of the problem but he neglected to take action against the violation. At the time of a re-inspection, there were still many issues that he did not correct, he failed as the CEO of Acme Markets, Inc., because he wasn’t only putting his company at risk, he put the public welfare and health at risk.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- JPW Insurance Inc. is going to private own insurance company that will be located on 1st Ave. North downtown in Birmingham, AL. We will sell Quality insurance products that will provide protection for an affordable price. This is very important because sometimes Insurance can determine life, death in insurance companies. According to nejm.org The United States is unique among nations in having private companies run its health insurance system, handle claims, and make determinations about coverage.... [tags: Insurance, Underwriting, Business]
2094 words (6 pages)
- Global Market Research Case Study Analysis The Sperry/MacLennan group of Dartmouth, Nova Scotia specializes in recreational building design (Aaker, Kumar, & Day, 2007). Junior partner Mitch Brooks has been researching data to present to the board that will support his research that the company should shift focus to a more diversified approach to future business efforts. A case study analysis will prove helpful to his efforts. Describe the situation discussed in the case Drew Sperry (Aaker, Kumar, & Day, 2007) founded Sperry/MacLennan Architects and Planners (S/M) in 1972.... [tags: Case Study]
1091 words (3.1 pages)
- Acme Minerals Extraction Company A long time ago, work used to be assigned only to one person and that person was in charge of doing only that task. Then, with the new technology innovations, we start seeing how companies started to trained some employees to be what they usually called “multi-tasking employees”. Since technology kept changing and became more advanced companies realized that having “multi-tasking employees” was not enough to satisfy the market demands and the production problems they were having at that moment.... [tags: Case Study, solution]
1417 words (4 pages)
- Case Study: Goodyear: The Aquatred Launch Although Goodyear was the leader in U.S. passenger tire market with 15% market share, the company still had to be very careful in all things done because the competition was so intense. There were so many players in the industry, both branded and private label. Although, each of them had less than 10% of market share, the second in rank, Michelin, was growing very fast in both replacement and OEM market. Also, the private label had become the biggest threat for all branded tires since many branded tire owners intended to replace their tires with private label.... [tags: Goodyear Tires Case Study Economics Market Analysi]
1229 words (3.5 pages)
- Course: International Business Management Activity: Case Study Company: PUMA |1924: |Rudolf and Adolf Dassler incorporate their first shoe company. | |1948: |Rudolf Dassler sets up his own company Puma Schuhfabrik Rudolf Dassler. | |1950: |Puma had established export ties to the United States, | |1959: |Rudolf Dassler's wife and two sons become part owners of the Puma Sportschuhfabriken Rudolf Dassler KG.... [tags: Business Case Study]
1746 words (5 pages)
- Introduction Since its' 1992 IPO, Starbucks has continually focused on growth. Initially, the growth was targeted to enable Starbucks to achieve their goal of becoming the leading North American retailer of specialty coffee. The early success they achieved resulted in Starbucks expanding their original goal to that of becoming the most recognized and respected coffee brand in the world. By way of example, this case study focuses on a request by McDonalds to serve Starbucks coffee at its' restaurants in order to discuss the marketing strategy and the underlying competitive premise that Starbucks has adopted to achieve both of their goals.... [tags: Business Case Study]
1449 words (4.1 pages)
- Lufthansa Case Study I. External Analysis: Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive. a. Environmental Analysis: The international war on terror, with its attendant rising cost of oil has created havoc in a number of ways (Lufthansa Annual Report, 2004). Rising costs have resulted from the increase in fuel prices. Customer check-in wait times and flight time delays have resulted from new regulations designed to ensure passenger and plane safety, including more rigorous bag searches, more extensive passenger screening, and the... [tags: Business Case Study]
1197 words (3.4 pages)
- MANAGE AN E-BUSINESS SUPPLY CHAIN: Case Study No. 2 The business model that eBay utilises is based on a person to person model. This model is also used in other forms such as garage sales and flea markets. This business model for eBay has been very successful due to the fact that there is no middleman. The lack of there being a middle man cuts costs for customers as they are dealing with the sellers themselves, which allows customers to bid at prices they are happy with or find an item that satisfies the price bracket they are looking for or willing to spend.... [tags: Business Case Study]
737 words (2.1 pages)
- McDonald's Corporation: Case Study McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).... [tags: Business Case Study]
1423 words (4.1 pages)
- WAL-MART CASE STUDY WAL-MART CASE ANALYSIS Impressions Wal-Mart is a company that leads its industry in numerous areas. The areas which impress are the accomplishments the company has made. “About 140 million people in 11 countries shopped at Wal-Mart …every week. More than half of American shoppers visited Wal-Mart at least once a month…an estimated 82 percent at American households have made at least one purchase at Wal-Mart” (Bianco, Zellner, 2003). Less impressive is the company being involved in over 6000 active lawsuits and what seems to be a proven track record of forcing out smaller business in the areas it locates to, putting many people out of work.... [tags: Business Case Study]
865 words (2.5 pages)