Class Actions: Class actions, which are more widely available in the U.S., offer the opportunity to condense the suits into one action. When there is a group where all the members have similar claims, one party is the representative plaintiff and brings suit on behalf of the entire class against the defendant. In a class action, Merck would be able to deal with multiple claimants at once, minimizing legal costs and potentially leading to a lower settlement per claimant because the numbers would be aggregated.
Legal Risk Management: A risk management plan would allow Merck to prevent or reduce loss. In the case of the Vioxx suits, it is too late for a preventative approach, which would try to comply with legal requirements and avoid legal problems. However, the reactive approach, which is a plan that handles problems as they arise may be a better option. Merck now focuses on reducing the costs of the problem. As a pharmaceutical company, Merck will continue risking similar problems with products that it manufactures. Thus it should create preventative and reactive plans to deal with them. Risk avoidance is not an option because pharmaceutical development and manufacturing is the core of their business. Risk reduction is the best method for management of legal risks because, while they are unavoidable, the risks can be reduced and legal problems can be mitigated.
Question 2:
Tort and Property Use: The tort of nuisance...
It generally arises between neighbours where one neighbour is engaging in an activity that inhibits the other's enjoyment of his or her land. The court must balance each neighbour's interest in enjoying their land and determine if the matter in which one is using their land is a nuisance. The plaintiff must prove that the intrusion is significant, not reasonable, there is no protection from viewing the alleged nuisance, and the intrusion is not temporary. If the defendant can demonstrate that one of these items does not exist, that the alleged nuisance provides a benefit to many, or the alleged nuisance was the original use of the land. Businesses can manage the risk of liability by ensuring amicable relationships with their local community, providing services that benefit many, and opening on locations where commercial uses would be the original ones.
Torts and Business Operations: False imprisonment is a tort that arises where an individual has been detained without any legal foundation. For businesses, a common scenario that arises is a person has been suspected of shoplifting and, if nothing has been stolen, a claim of false imprisonment may arise. A plaintiff must demonstrate that he or she was detained without consent or remained out of fear and suffered harm such as embarrassment. Defendants can defeat false imprisonment claims by demonstrating that there was a legal justification for the detention.
