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Fact Pattern 19-1 In 1999, the Drugs-R-Us Began Testing Its New Drug, Reduceo

question 356

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Fact Pattern 19-1
In 1999, the Drugs-R-Us began testing its new drug, Reduceo, a medicine to help people lose weight. Tests looked promising and, in 2006, the company applied to the FDA for approval to market Reduceo as a prescription drug. In March 2009, the FDA granted Drug-R-Us approval to market Reduceo. Reduceo was sold with some "diet enhancing" cookies that contained no drugs but were claimed to help dieting with Reduceo.
Frank saw an ad for the new drug. The Reduceo ad stated that it was a "wonder drug" and "tests prove it is the safest weight reduction drug on the market today!" Frank was interested and made an appointment to see his doctor.
Frank's physician prescribed the new drug for his patient. Frank had no success using other weight-loss drugs, and dieting and exercise seemed ineffective. Frank took Reduceo from June until the end of August and lost 25 lbs. He also ate Reduceo's cookies. He was delighted with his weight loss, but was concerned because dots appeared before his eyes, causing disorientation. One day, the dots appeared before Frank's eyes while he was driving. He became disoriented and hit a tree and was seriously injured. He sued Drugs-R-Us, alleging negligence in manufacturing and inadequate warning of possible effects, as well as for deceptive advertising.
-Refer to Fact Pattern 19-1. If Drugs-R-Us agrees to settle a complaint that the company engaged in deceptive advertising, what is the agreement called?

Definitions:

Partnership Agreement

A contract between partners in a partnership which outlines the terms and conditions of the relationship in detail.

Partners

Individuals or entities that engage in business or ventures together with shared risks and profits.

Partnership Credit Card

A partnership credit card is a credit card issued to a partnership firm, allowing the partners to make business-related purchases up to a certain credit limit.

Personal Property

Any item of property that is not permanently attached to or part of real estate; essentially, any property that is movable.