Undertakings, breach

The Appeal Board has a dual role, acting over the activities of the Code of Practice Panel and the PMCPA as both an appeal body and as a supervisory body. All complaints received by the Authority and all rulings by the Code of Practice Panel are reported to the Appeal Board, thus ensuring independent scrutiny from outside the pharmaceutical industry of both the authority s and the panel s activities by the independent members and independent chairman of the Appeal Board. Where promotional material or activities are ruled in breach of the Code, the company concerned must cease to use the material or cease the activity in question forthwith and provide a written undertaking to that effect. Reports on all cases under the Code of Practice are also published, naming companies ruled in breach of the code. These reports receive wide coverage, particularly in the pharmaceutical press and occasionally find their way into the lay press. 

The respondent company has ten working days to provide a written undertaking that the promotional activity or use of the material in question (if not already discontinued or no longer in use) will cease forthwith and that all possible steps will be taken to avoid a similar breach of the Code in the future. This undertaking must be signed by the chief executive of the company or with his or her authority and must be accompanied by details of the actions taken by the company to implement the undertaking, including the date on which the promotional material was finally used or appeared and/or the last date on which the promotional activity took place. 

If the company accepts that there is a breach of the Code, the company is requested to provide an undertaking providing the information specified in Paragraph 7.1... 

Voluntary codes are not legally enforceable in the same way as a statute. However, such codes are an important part of the overall picture, as they play a part in setting the standards of behavior for the pharmaceutical company and may be used as evidence in civil cases. The ABPI code of practice on promotion of prescription medicine ( the Code ) is operated by the Prescription Medicines Code of Practice Authority (PMCPA), which was established by the ABPI as an independent authority. It is a condition of membership of the ABPI that the pharmaceutical companies abide by the Code. In addition, the Code contains a number of sanctions that may be imposed against member companies. Complaints are made to the PMCPA, and if it is decided that there has been a breach of the Code, the company concerned has 10 working days to provide a written undertaking to discontinue the promotional activity in question, with an adminis-... 

Directors must act in good faith and for the benefit of the company. Suppose, for example, that a consultancy company is approached to undertake a short assignment A director who became aware of this and undertook the assigmnent in a personal capacity, would be breaching this duty. He or she could be required to pay the compaity compensation for the loss of the contract and might not be allowed to cany it out in a personal capacity. 

If a legal or natural person found responsible for a breach is residing or is otherwise within the jurisdiction of a State not Party to the Convention, the Director-General may seek the authority of the Executive Council or the Conference to undertake consultations with the aim of encouraging that State to initiate or facilitate appropriate action to support legal processes resulting from the breach. 

I confirm that I am aware that a breach, as determined by the Corrference of the States Parties, of these provisions and undertakings during or after my term (or terms) as member of the Scientific Advisory Board or as a member of a temporary working group may result in penal prosecution or civil action tmder the jurisdiction of a State Party to the Convention which could result in severe penalties or liability for damages. 

Breach Violation of a right, of a duty, or of a law, either by act of coimnission or by non-fulfillment of an obligation. Thus, breach of contract is the unexcused failure to satisfy one s contractual undertaking. (Bockrath and Plotnick 2011). The focus is on results in that breach has little to do with intention. 

On appeal, the court established the precedent that, if a company, in the course of its undertaking (which it was found in this case), creates a risk to contractors or members of the public, it has a duty to reduce those risks to the lowest level reasonably practicable. In this case, the court found that the chemical company had failed to discharge this duty and that they, as well as the specialist contractor, were in breach of their duty of care. 

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