Question

John R. Park was president of Acme Markets, Inc., a national food chain headquartered in Philadelphia with 36,000 employees and 16 warehouses. In 1970, the FDA found problems with rodent infestation at Acme’s Philadelphia warehouse facility. In 1971, the FDA found the same conditions in Acme’s Baltimore warehouse. In 1972, the FDA’s chief of compliance wrote to Park and asked that he direct his attention to the prolonged problems of warehouse infestation. The FDA inspected the Baltimore warehouse two months after Park was sent the letter and found the same problems. Acme and Park were both charged with violations of the Pure Food and Drug Act. DECISION BELOW: Park was convicted and fined $500. The Court of Appeals reversed. ISSUE ON APPEAL: Was Park liable for the warehouse problems when subordinates had been ordered to remedy the situation? DECISION: Yes. He was aware of the deficiencies in his subordinates’ system and still took no action.
1. What problems did the FDA find in the Acme warehouses, and over what period?
2. Was Mr. Park warned about the problem? What action did he take?
3. What standard of liability did the instruction given by the judge impose?

Answer 1

Answer:

1. FDA found rodent infestation in the Acme warehouses, between 1970 and 1972.

2. Mr. Park was warned about the problem severally and by reason of his position in the company, he failed to prevent or promptly correct the violation.

3. The instruction given by the judge impose a standard criminal liability and a fine of $500.