Case Study : Acme Markets, Inc. Essay

Case Study : Acme Markets, Inc. Essay

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MEMORANDUM
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.

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