Question
Eskew Lamb & Furness Convenience, Inc. (ELF) owns and operates convenience stores - with gas stations and a robust retail inventory - throughout New England.
Eskew Lamb & Furness Convenience, Inc. ("ELF") owns and operates convenience stores - with gas stations and a robust retail inventory - throughout New England. ELF has about 2000 employees, ranging from minimum-wage cashiers to C-Suite executive employees. The stores sell alcoholic beverages, tobacco and e-cigarettes, and typical convenience store items. It uses a different supplier for each of those categories of products. If ELF is to make sound business decisions, its management team must be aware of a broad array of legal considerations. Sometimes, legal principles may constrain ELF's business decisions; at other times, the law may prove a valuable ally of ELF in the successful operation of the firm's business.
Of course, the ELF management group will rely on the advice of in-house counsel or outside attorneys who are in private practice. The approach of simply "leaving the law to the lawyers," however, is likely to be counterproductive. It will often be up to non-lawyers to identify a potential legal issue or pitfall about which ELF needs professional guidance. Failing to spot an issue in a timely manner may allow legal problems to develop and fester, and even the most skilled attorneys may have difficulty rescuing the firm from the resulting predicament.
On the other hand, failure to identify a legal consideration can mean a failure to seek advice in time to obtain an advantage that applicable law would otherwise have provided, and the corporation may lose out on a beneficial opportunity.
1)Are there any tactics or safeguards that ELF might preemptively pursue to limit legal exposure when dealing with customers, employees, and other businesses?
2) Bernie's Candy Bars are manufactured in Asia and imported by ELF for sale in its stores.News reports state that a recent shipment has been found to contain ethylene glycol, but this has not been confirmed by the FDA, which says, "We are awaiting test results and urge caution."ELF immediately pulls all Bernie Bars from its shelves and places notices on the sales rack that says:
"Recent news report suggest that Bernie Bars may contain unsafe levels of a dangerous chemical. If you have purchased a Bernie Bar, including [list of various types of candy bars], please throw it out or return the candy bars to ELF Mart and receive a free Big Slurp."
Before these reports, Lizzie's mom buys a Bernie Peanut Butter Delight Bar at her local ELF Mart and allows it as a treat for her five year old daughter, Amy. That night, Amy becomes quite ill with symptoms that look very much like ethylene glycol toxicity. She ultimately recovers but while she is ill, Lizzie is forced to quit her job and stay home to care for Amy, causing serious financial consequences for the family. Additionally, the medical bills exceed insurance coverage.
The FDA Consumer Products Act prohibits the presence of ethylene glycol in more than 3 parts per million in products intended for human consumption.
Can Lizzie sue ELF on behalf of her daughter?Under what legal theory(ies)?
3) assume Lizzie does bring a successful suit on behalf of Amy.
What damages are recoverable?Do you think a jury will award punitive damages?Why or why not?
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