question archive Facts: Ali is a manager member of IP Specialists, a 15-person member-managed LLC located in Hong Kong, with a branch office in Marina Del Rey, CA, engaged in helping startup companies get their products to market

Facts: Ali is a manager member of IP Specialists, a 15-person member-managed LLC located in Hong Kong, with a branch office in Marina Del Rey, CA, engaged in helping startup companies get their products to market

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Facts: Ali is a manager member of IP Specialists, a 15-person member-managed LLC located in Hong Kong, with a branch office in Marina Del Rey, CA, engaged in helping startup companies get their products to market. Ali met with an entrepreneur named Enzo who had a new drug he wanted to market. Enzo provided copies of his research and financials to Ali. Soon thereafter, without Enzo's permission, Ali told a Chinese company about the drug and provided them with Enzo's research materials. The Chinese company quickly made a counterfeit copy of the drug and began marketing the drug in South America and Asia. Ali was granted a percentage of sales in the new drug and a large bonus from the Chinese company. He did not tell his LLC about this deal.

While driving to a bank in San Diego, CA, to deposit his bonus, Ali was drinking from a bottle of beer (his fourth of the hour) and hit the vehicle of a soccer mom carrying six children on their way to a post-game pizza celebration. Several of the children suffered severe personal and emotional injuries. However, before Ali can be served with a claim for damages, he flees to Dubai to avoid any legal problems. A few months later he writes the LLC that he is withdrawing from the LLC and is not responsible for any debts.

The families of the children who were injured have sued Ali and the LLC in the U.S. District Court (federal) in San Diego, CA. In a separate lawsuit, the LLC is suing Ali for damages in federal court in Los Angeles, CA.

Ali was also in a relationship with Kara Le while he stayed in Marina Del Rey and they had a signed a "relationship contract" promising, among other things, to share their future in a mutually agreed upon location with two incomes. They exchanged dollar bills to "make the contract legal". Upon learning that Ali has left for Dubai, Kara Le files a California state court lawsuit alleging breach of contract.

The cases have been referred to mandatory arbitration for resolution.

 

QUESTIONS:

  1. state if you decided in favor of the Plaintiff's (Families) or the Defendant's (LLC & Ali)? Is there a valid contact between Ali and Kara? Do not spend time writing about your personal opinions. An arbitrator cannot use his or her personal beliefs in deciding cases. Arbitrators follow the law and apply it impartially to the facts. state your opinion in an objective (not subjective) manner.
  2. Determine the amount of damages and/or other relief awarded to the prevailing parties; and,
  3.  Finally, identify, analyze, and suggest how to resolve any ethical issues that exist in this scenario.

 

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State if you decided in favor of the Plaintiff's (Families) or the Defendant's (LLC & Ali)

I would decide in favor of the plaintiff, the affected families of the kids who were involved in an accident. Ali was driving under the influence of alcohol and thus he put the lives of other people and himself in danger. This is also against the law where it states that for drivers older than 21 years, driving with alcohol concentration at 0.08% is illegal (Navalta, et al., 2019).

Step-by-step explanation

Is there a valid contact between Ali and Kara? 

There is no valid contract between Ali and Kara as they only had an agreement that they would share their future earnings. The fact that it was not recorded and signed as a show of contract of agreement makes the agreement an invalid contract (Brock, 2019).

 

Determine the amount of damages and/or other relief awarded to the prevailing parties; and,

The damage that would be awarded to the families of the affected children would be the refund of the amount of money or cost incurred while filing a lawsuit and on top of that the damage that the families incur while taking care of the medical health of the children. The LLC would also get damages awarded for the fact that Ali collaborated with a Chinese company to make a counterfeit drug without the knowledge of the LLC and thus the charges would be the damage of the breached contract (Brock, 2019).

 

Finally, identify, analyze, and suggest how to resolve any ethical issues that exist in this scenario

An ethical issue that exists in this case is that Ali took a drug formula that was provided by Enzo, a researcher who was working on the drug. The Chinese company and Ali thus stole the idea of Enzo and did not acknowledge him for his work nor did he get the payment that he deserved. This is a violation of the innovation and inventions rights and can be said that the Ali and the Chinese company violated the patent rights of Enzo. This can be resolved by filing a lawsuit for damages of using Enzo's idea illegally (Yip, et al., 2016).