Explain the role of administrative agencies

Assignment Help Business Law and Ethics

Reference no: EM133197239 , Length: 10 pages

Question: The Quality Egg case brings a whole new meaning to the term rotten egg! In 2014, Quality Egg, LLC, was fined $7 million for food adulteration, product misbranding, and bribery. In addition, the company owner, Austin DeCoster, and the CEO, Peter DeCoster, were sentenced to three months in federal prison stemming from their role in Salmonella outbreaks that affected more than 60,000 consumers. Both men were prosecuted according to the Park Doctrine, which makes company executives liable for Food, Drug, and Cosmetic Act (FDCA) violations. Under the Park Doctrine, the government did not have to prove that the executives knowingly shipped contaminated eggs. Just by virtue of being company executives, they should have known of the extreme filth and neglect of the company's hen house operations and that the shipped eggs were both contaminated and unfit for consumption.

There doesn't seem to be a limit to the reach of the Park Doctrine. The Food and Drug Administration recently warned distributors of dietary supplements that they, too, can be held liable under the Park Doctrine. What's interesting about this legal development is that a company can be held liable for contractor misconduct. Moral of the story: be careful selecting contractors to manufacture or package your products!

Upon successful completion of the course material, you will be able to:

Explain the role of administrative agencies in regulating business.

Reference no: EM133197239

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