Question
Donny (D); Ivan (I); Enrique (E); and Donny, Jr. (D, Jr.) are a close nit family with some outrageous ideas.One afternoon while the four were
Donny (D); Ivan (I); Enrique (E); and Donny, Jr. (D, Jr.) are a close nit family with some outrageous ideas.One afternoon while the four were having lunch in the Marled Largo Estate dining room, Donny's face began to turn bright orange and his tongue began to swell causing him to speak incomplete & incoherent phrases.Freaking out, the other three rushed him to the emergency room where they diagnosed Donny with an allergy to Pellosian Sea Bass. While visiting Donny in the hospital, the remaining three came up with a great solution: An Iphone App that could take a picture of food and diagnose what was in it!
Enrique, the more brilliant and technologically astute of the four was an amateur programmer and volunteered to get the programming started. After weeks of writing, Enrique showed the prototype to Donny; Don, Jr.; and Ivan who added their input into the program and edits were made based on that advice.
Having a friend at Apple in the Engineering Department, Don, Jr. learned of a new camera that would be integrated into the IPhone 12 that shot in infrared and could see things that most cameras could not. It was perfect for this program. Don, Jr. made adjustments to the computer code supplied by Enrique so the new camera would better analyze the substances.
Ivan, a Marketing major, began contacting news outlets in anticipation of the launch of the app and selling the news organizations on the idea. He designed the App "button" and the logos and promotional materials.
The idea was a hit! News outlets picked up on the story and called the app a solution to obesity! Allergy doctors were telling every patient that they needed to purchase this product as a life saving tool. And it was the number one requested IPhone App of 2020 even at a cost of $9.99.
After 4 months on the market, Apple had finally gotten around to sending the first check to Enrique (the named person on the App application to Apple). An installment check of $1,000,000 dollars for the first downloads of the program. Enrique promptly put the check in his personal checking account.He paid his own rent, car note, and went shopping to buy new clothes and some entertainment items for his home.Additionally, he gave Don, Jr. and Ivan $5,000 each to thank them for their contributions to the project. Obviously angry about the distribution of funds, Donald; Ivan; and Don, Jr. sought out lawyers after Enrique refused to pay any additional monies to them.
In the early months of the case against Enrique, Albert, a 7 year old kid from upstate New York died of an allergy to peanuts. According to the suit filed by his parents, Albert had taken a photo of some dog food that he was "double-dog-daring" his best friend to eat. The Iphone App said that the dog food contained horse, chicken and pork assorted parts and assorted grains, but didn't list peanuts. Albert's friend told him that if Albert would eat it, so would he. So Albert did. He died of a peanut allergy as peanuts were in the food, even though a peanut is not technically a grain.
Apparently the App categorized minute particles of peanuts as grain in a glitch that was not caught by Enrique during his programming. Albert's family will likely win $2-3 million and have offered to settle the suit for a payment of $1.3 million. Donald; Ivan; and Don, Jr. immediately dropped their suit against Enrique for any remaining compensation from the sale of the App, although the case could still be brought back up.
Knowing that there is liability for a faulty product, please explain the loses or gains for Donald; Ivan; Enrique; and Don, Jr. How do you arrive at your outcome and how do Enrique's actions impact the case?
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