Strayer Leg550 Assignment 4

| September 29, 2018

4: Legal and Ethical Considerations in Marketing, Product Safety, and
Intellectual Property Due Week 9 and worth 300 points
You are a new associate at the law firm of Dewey, Chetum, and Howe. John, a
former researcher at PharmaCARE, comes to your office. He has concerns about
PharmaCARE’s use of AD23, one of the company’s top-selling diabetes drugs. Two
(2) years ago, after PharmaCARE’s research indicated that AD23 might also slow
the progression of Alzheimer’s disease, John and his team of pharmacists began
reformulating the drug to maximize that effect. In order to avoid the Food and
Drug Administration’s (FDA) scrutiny, PharmaCARE established a wholly-owned
subsidiary, CompCARE, to operate as a compounding pharmacy to sell the new
formulation to individuals on a prescription basis. CompCARE established itself
in a suburban office park near its parent’s headquarters. To conserve money and
time, CompCARE did a quick, low-cost renovation.
CompCARE benefited from PharmaCARE’s reputation, databases, networks, and sales
and marketing expertise, and within six (6) months had the medical community
buzzing about AD23. Demand soared, particularly among Medicare, Medicaid, and
Veterans Affairs patients. Seeing the opportunity to realize even more profit,
CompCARE began advertising AD23 directly to consumers and marketing the drug
directly to hospitals, clinics, and physician offices, even though compounding
pharmacies are not permitted to sell drugs in bulk for general use. To
circumvent this technicality, CompCARE encouraged doctors to fax lists of
fictitious patient names to CompCARE. PharmaCARE sold CompCARE to WellCo, a
large drugstore chain, just weeks before AD23 was publicly linked to over 200
cardiac deaths.
As CompCARE and its new parent company enjoyed record profits and PharmaCARE’s
stock price approached $300 per share, reports started surfacing that people
who received AD23 seemed to be suffering heart attacks at an alarming rate. The
company ignored this data and continued filling large orders and paying huge
bonuses to all the executives and managers, including John, whose wife recently
died from a heart attack after using AD23.
John has come to you with an internal company memo describing the potential
problems with AD23, and information describing the company’s willingness “roll
the dice” and continue to market the drug.
Your senior partner has asked you to write a memo outlining the following
issues for review by the senior partners.
In preparation for this assignment, use the Internet or Strayer Library to
research examples of intellectual property theft that occurred within the past
two (2) years.
Write an eight to ten (8-10) page paper in which you:
three to five (3-5) ethical issues relating to marketing and advertising,
intellectual property, and regulation of product safety and examine
whether PharmaCARE violated any of the issues in question.Argue
for or against Direct-to-Consumer (DTC) marketing by drug companies.
Provide support for your response.Determine
the parties responsible for regulating compounding pharmacies under the
current regulatory scheme, the actions that either these parties or the
FDA could / should have taken in this scenario, and whether PharmaCARE
could face legal exposure surrounding its practices. Support your
the manner in which PharmaCARE used U.S. law to protect its own
intellectual property and if John has any claim to being the true
“inventor” of AD23. Suggest at least three (3) ways the company could
compensate John for the use of his intellectual property.Summarize
at least one (1) current example (within the past two [2] years) of
intellectual property theft, and examine the effect on that company’s
the potential issue surrounding the death of John’s wife and other
potential litigants against PharmaCARE as a result of AD23.Specify
both the major arguments that John can make to claim that he is a
whistleblower and the type of protections that he should be afforded.
Justify your response.Use at
least three (3) quality resources in this assignment. Note:
Wikipedia is not an acceptable reference and proprietary Websites do not
qualify as academic resources.
Your assignment must follow these formatting requirements:
typed, double spaced, using Times New Roman font (size 12), with one-inch
margins on all sides; citations and references must follow APA or
school-specific format. Check with your professor for any additional
a cover page containing the title of the assignment, the student’s name,
the professor’s name, the course title, and the date. The cover page and
the reference page are not included in the required assignment page
The specific course learning outcomes associated with this
assignment are:
and assess legal and ethical restraints on marketing and advertising,
relative to both consumers and organizations.Analyze
and evaluate laws and regulations relative to product safety and
copyright laws and intellectual property rights and assess how well they
balance competing interests.Use
technology and information resources to research issues in law, ethics,
and corporate governance.Write
clearly and concisely about law, ethics, and corporate governance using
proper writing mechanics.

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