United States v. Dotterweich
Facts
Buffalo Pharmacal Company, a drug jobber, bought drugs from manufacturers and shipped them in interstate commerce after repacking them under its own label. Two consolidated informations charged both the company and Dotterweich, its president and general manager, with violations of the Federal Food, Drug, and Cosmetic Act based on two shipments of misbranded drugs and one shipment of an adulterated drug. The jury disagreed as to the corporation but found Dotterweich guilty on all three counts. The court proceeded on the basis that the evidence was sufficient to support findings of adulteration and misbranding.
Issue
Whether, under the Federal Food, Drug, and Cosmetic Act, a corporate officer may be convicted as a "person" for introducing or delivering for introduction into interstate commerce adulterated or misbranded drugs when the corporation is the shipper. Also, whether the Act's guaranty provision limits criminal liability to the proprietor who would ordinarily receive the guaranty.
Rule
Under the Federal Food, Drug, and Cosmetic Act, the misdemeanor prohibition against introducing or delivering for introduction into interstate commerce adulterated or misbranded drugs applies not only to corporations but also to individuals who, though acting for the corporation, have a responsible share in the furtherance of the forbidden transaction. The Act is a public-welfare measure that dispenses with the conventional requirement of awareness of wrongdoing and places the risk on those standing in responsible relation to the public danger, unless the enterprise enjoys the immunity of a statutory guaranty.
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