Business Law: Principles for Today's Commercial Environment 3rd Edition by Marianne Moody Jennings, David Twomey, Marianne Jennings

Exercise 3

Pharmaceutical companies, faced with the uphill battle of getting doctors to take a look at their new products, have created complex systems and programs for enticing doctors to come, sit, and absorb information about the new products. Following is a list of the various type of benefits and gifts that drug companies have given doctors over the past few years to entice them to consider prescribing their new offerings:
An event called "Why Cook " in which doctors were given the chance to review drug studies and product information at a restaurant as their meals were being prepared-they could leave as soon as their meals were ready, and they were treated to appetizers and drinks as they waited
Events at Christmas tree lots where doctors can come and review materials and pick up a free Christmas tree
Flowers sent to doctors' offices on Valentine's Day with materials attached
Manicures as they study materials on new drugs
Pedicures as they study materials on new drugs
Free car washes during which they study materials
Free books with materials enclosed
Free CDs with materials attached
Bottles of wine with materials attached
Events at Barnes Noble where doctors can browse and pick out a book for themselves for free as long as they also take some materials on a new drug
Some doctors say that they can enjoy dinner on a drug company as often as five times per week. The American Medical Association (AMA) frowns on the "dine-and-dash" format because its rules provide that dinners are acceptable only as long as the doctors sit and learn something from a featured speaker. The AMA also limits gifts to those of a "minimal value" that should be related to their patients, such as note pads and pens with the new drug's name imprinted on them. The chairman of the AMA Committee on Ethics says the following about gifts, "There are doctors who say, 'I always do what's best for my patients, and these gifts and dinners and trips do not influence me.' They are wrong." In which category of ethical issues do these gifts fall Do you think doctors act ethically in accepting gifts, meals, and favors The Food and Drug Administration recently issued rules about such favors and perks. Why