FAULTY FORMULA

Fred, Dan, and Mat have been working on creating a formula for almost 12 months. They must somehow come up with the final factor to make it function properly.

The 3 scientists have been colleagues for several years at Jamco Corporation. For the last 13 months or so, they have been working on a formula that Mat devised. When created to perfection, this formula will create a liquid that, when added to gas tanks, will prevent gasoline from freezing for 3 months.

The “eureka” moment has arrived. After several trials, they finally find all the right factors that create a formula that prevents gasoline from freezing for 3 months when added to gas tanks of vehicles.

Dan prepared for this moment. He has a small bottle of champagne in the fridge. He walks over to it and takes out the bottle. Fred gets 3 champagne glasses and puts them on the kitchen table that is set up in the lab. After their glasses are filled with the champagne, they raise their glasses to toast their victory.

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Fred is overjoyed that he needs to tell his best friend of their success. He speed dials Paul on his cell phone.

“Hi Paul”, says Fred.

“Hi, Fred”, replies Paul.

Fred continues by saying: “Well, we did it! We finally came up with the formula for the liquid to prevent gasoline from freezing in gas tanks.”

Paul replies: “Congratulations, Fred. How many months does it prevent gas from freezing?”

Fred replies: “Three months. Isn’t that great?”

“Oh, yeah! That’s fabulous news! Do me a favour, Fred”, says Paul.

“Sure. What do you want me to do?”, replies Fred.

“Please e-mail me the formula. I want to look at it.”, replies Paul.

Fred leaves the celebration to go to his computer. He sends Paul the formula. When Paul receives it, he analyzes it. He notices something. He determines that by adding an additional factor to the formula, it can become more effective.

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Paul tinkers with the formula. He factored it correctly. By adding his factor to the formula, the liquid, with his new formula, can keep gasoline from freezing for 6 months.

Paul is elated. He quickly puts together a PowerPoint presentation to illustrate how his formula is more effective. He now phones Fred.

“Hi, Fred”, says Paul.

“Hi, Paul”, replies Fred.

“Listen, I have good news for you. I have improved the formula. Mine will prevent gasoline from freezing for 6 months.”

“Are you serious?”, replies Fred.

“Absolutely!”, replies Paul.

“Let me come over this afternoon to show you the PowerPoint presentation I have composed to show you my formula.”, concludes Paul.

Fred agrees. Paul presents the demonstration to Fred, Dan, and Matt. They are impressed. They will use Paul’s formula to create the liquid that will be twice as effective.

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At this time, Paul makes a will. He puts all his assets in his wife’s name. At the same time, Jamco Corporation mass produces the liquid, with Paul’s formula, and is placed on store shelves. Sales are brisk, especially in November, because consumers are planning for the winter months between November and March.

The 4 scientists are laughing all the way to the bank. Sales of their liquid invention are substantial. The sales are steady for the next 3 months.

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Something unexpected happens in the middle of the 4^th month of the product being on the market. Consumers who bought the product 3 months previously, are discovering that gasoline has been freezing in their gas tanks after they added the liquid to their gas tanks.

Fred calls Paul. He says: “Did you see the news report today?”

Paul replies: “Yes. And I was very disappointed about our product.”

Fred, Dan, and Mat berate Paul. At this time, a class action lawsuit is filed in federal court to sue the manufacturer for misleading the public with a false claim about the length of time the liquid is supposed to be effective for: 6 months as opposed to the 3 months it was effective for.

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Fred, Dan, and Mat are faced with this lawsuit. All three of them feel they have no liability for the faulty formula that was used to create the liquid.

Fred phones Paul and says: “Paul, you are totally responsible for the

Liquid not being as effective as it claims to be on the label of the bottle. Dan, Matt, and I demand that you be responsible for all legal costs.”

Paul replies, “As of this morning, I have declared bankruptcy. Forget about coming after me to collect any money. That is because about a month ago, I transferred all my assets to my wife. So, you can’t touch me!”

Fred was furious at this point. 

Then Paul replies: “This is the last that you will talk to me. From this point on, you will not be able to contact me because I am leaving the country.”

At that moment, Paul hangs up the phone. Fred turns to Dan and Matt and tells them: “Guys, we have been scammed by Paul. We are going to have to go to trial by ourselves without him.”

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At this point, the product is withdrawn from the market. There ends up being a gigantic warehouse of this product that is banned from the marketplace and cannot be sold or disposed of. 

Fred, Dan, and Mat are arrested and thrown in jail. Their trial date takes place a month later. The trial judge rules that, as owners of the Jamco Corporation, they are found guilty of misrepresenting and misleading the public by making a false claim that the product they sold was to be effective for 6 months rather than the 3 months it ended up being effective for. They are sentenced to 5 years in jail.

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All this is happening while Paul is free as a bird! He and his wife are now residents of Aruba. He has no assets to his name in the U.S. And he joyfully banked the royalties he made from the sale of the product which was made from his faulty formula. He sheltered all his assets in Aruba just before the product was manufactured. Therefore, he was not brought to trial. 

What has happened, after all is said and done, is that too many cooks spoiled the broth. But in the end, only one person ended up tasting success.