Question
Calvin Schwimmer was the Chief Executive Officer of Almonds R Us (ARU). ARU processes peanuts into products such as chopped almonds and almond paste, which
Calvin Schwimmer was the Chief Executive Officer of Almonds R Us (ARU). ARU processes peanuts into products such as chopped almonds and almond paste, which ARU sells to major food manufacturers. ARUs customers require that ARU have an independent laboratory test a sample of each production lot to make sure that there are no harmful bacteria in the products. 6 months ago, over a period of four weeks, every test that was conducted by the independent laboratory showed the presence of a dangerous bacteria in ARUs products that could cause illness or even death. Because of his concern of losing profits, Schwimmer ordered his employees not to throw out any products, but to ship out those products that had tested positive for the dangerous bacteria. He also ordered them to change documents so that they would not show the positive tests. ARUs products were shipped out and incorporated into various products, including the popular almond cookies, manufactured and distributed by Fabulous Cookie Company, one of ARUs customers. Over two hundred consumers who ate the almond cookies or other foods incorporated and tainted ARU products, became ill and a few of them died.
(a) Scott is one of the consumers who became ill after eating the almond cookies. He was hospitalized for three weeks and still has some lasting effects. Does Scott have any claims against ARU to recover damages for his injuries? Explain.
(b) Does Scott have any claims against Fabulous Cookie Company? Explain.
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