Law Legal Issues

[Date of Submission]

Law Legal Issues

What contractual or other legal issues does Stellar Health face? What legal alternatives could Steven consider?

The case study which has been provided, shows the case of Steven Brice who is the manufacturing manager for Stellar Health, which is a middle sized pharmaceutical company. The company is processing a big order of medicines to a company with which they have had a good past relationship. It has a serious share in the company's annual revenue turnover. At the last moment Steven sees that there a small problem in the labeling of the medicine. A few drug quantities have been mistakenly printed more than the actual existing composition. It was a mix-up with another 'version' of the same medicine which is costlier in this one.

Now Steven as the manager must face a few critical decisions that have a huge impact on the future of the company.

Firstly looking at it from a contractual or legal point of view, it can be said that when the company signed a contract with its client company there exists two points. Firstly, in the contract as well it will be specified that the manufacturer shall provide the client medicines that are created perfectly in the manner which is needed and agreed upon by both country. Secondly, there also exists the ethical point of view. When the other company had signed the contract with Stellar Health, it did so in good faith and expects Stellar to honor the agreement. For this reason, they are not placing any quality checking personnel who are checking the quality of the orders as they are packaged by the parent company.

Stellar is both contract bound and honor bound to address or rectify this problem before sending it to their client who are working with it on good faith.

The first path which Stellar can take is do nothing. Leave it up to gamble. Wait and see if someone spots the defect or not. This is both legally and ethically a wrong approach to take. So even though the option is there, Stellar should not consider it.

Secondly, Stellar contact their client company and inform them of the printing error regarding the composition of the medicines. They can send their medicines for testing and use the reports to validate the fact that only the instructions of the compositions have differed, the actually component remain in the same percentages, therefore having no effect on the properties of medicine.

The third legal course of action which can be taken is that Stellar Heart bear the cost of the mistake itself, ask the client for an extension in the of delivery and re-label all the medicines to the proper chemical constituencies.

These are the choices for course of action which Stellar has to choose from in order to tackle the scenario.

What conflicting ethical issues are raised by this scenario and who are the parties that Steven needs to consider when evaluating the situation and potential courses of action?

Steven needs to consider the fact that the ...