The element and it is at this point when

The United States has been known as a land
of opportunity and growth for both individuals and business, but it is also
known as the land of the lawsuits. In the United States you can practically
submit a law suit for almost everything, especially if it’s a lawsuit against a
large corporation. As a pharmaceutical company we need to be aware of those
risks and how they can potentially harm us.

            As
a pharmaceutical company the liability for the industry is very high compared
to other industries. The main liability is dealing with people’s health as part
of the nature of the business and any mistake made would be considered as
negligence in the eyes of society. There is drug researching and testing that
needs to be done in order to determine if the drug on hand can go public and assuring
that the risks for its consumers would not be of harm to their health. Most of
the times these type of research requires the human factor testing element and
it is at this point when the liability increases because now there is the
potential of a person getting harmed. Even though the testing is done to volunteers
if something goes wrong the liability falls in the company and there can be a
law suit filed for negligence. Everyday there are new drugs that are hitting
the market which increases the tort of business liability in its three forms,
intentional, unintentional or strict, because pharmaceutical companies have to
do more testing and researching which increases the odds of something going
wrong with the volunteer test groups. These eventually lead to higher insurance
cost for the companies and translate to higher medical cost to the consumers.

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             Not only the tort liability falls with the
company but it can also escalate to a criminal liability. The ABC pharmaceutical
company and the actions of their representatives can result in the following
potential torts; Assault, Battery, Breach of Duty, and Strict Liability.  Assault is defined as the threat of immediate
harm or offensive contact, or any action that arouses reasonable apprehension
of imminent harm (Cheeseman (2016)). 
Actual physical contact is unnecessary to be considered assault.  Battery is defined as unauthorized and
harmful or offensive direct or indirect physical contact with another person that
causes injury (Cheeseman, 2016, p. 116). 
Breach of Duty is failure to exercise care and Strict Liability is when
there is unusually unsafe activities in turn caused an injury. Representatives
for the ABC pharmaceutical company are liable under the torts listed
above.  As part of the nature of the
business representatives of the ABC pharmaceutical company can prescribe and
test drugs on volunteer research groups. If any harm to the volunteers is done
it can be seen as apprehension of imminent harm, the company representatives
are responsible for the indirect contact that caused injury, and can be seen as
they did not exercise care when making the decision administer the drug. The
actual scope of actions in tort for personal injury is severely limited in some
cases.  Only certain types of injury are
likely to get compensated. The ABC pharmaceutical company may be sued for
liability and being the accident happened with one of their drugs, they could
be held liable but the ABC pharmaceutical company did not have control over the
representative’s actions or how the volunteer’s health was going to react to
the drug.

There are a few ways a company can lower their risks of potential
torts but the most important one would be due diligence efforts.  Due diligence can identify and responsibility
manage potential risks.  Due diligence in
the acquisition, sale, or dissolution of a business can uncover any legal
issues (Mann & Bellamy, 2013).  In
the case of the ABC pharmaceutical company making sure that their employees are
properly trained and certified on how to prescribe and administer drugs. By
adding more extensive research on other living organisms prior to testing those
on humans can prevent them from putting themselves and their clients in harm’s
way. Analyzing the potential severe harms that their product can have on
consumers and determining if it is worth the risk and lastly by closely
monitoring the results of their tests.

The need for a reform that addresses the tort
liability for business at least in the pharmaceutical industry is needed. Most
of the pharmaceutical companies operate in high risk environments and it is the
nature of the their business, research and development is being constantly done
to avoid harm to consumers but a lot of times civil lawsuits are filed against
them on the grounds of negligence. And it is costing companies higher amounts
of money to conduct and develop new drugs to help us with any diseases that are
in place.