A New Jersey drug manufacturer maintained a marketing plan to maximize sales efforts for the company. However, the marketing plan violated federal rules in the industry in which it operated: pharmaceuticals. The company had a marketing plan to promote the prescription medications it produced for purposes other than the main purposes of those drugs. It is within New Jersey and federal rules for physicians to prescribe medications to patients that may not be their primary intended usages. But it is against federal law for pharmaceutical companies to promote these drugs for use in ways that are not their primary and approved usages.
The company settled civil claims in the issue that cost the company hundreds of millions of dollars. In addition, the company claimed as part of the settlement that its promotional and marketing practices violated federal law.
New Jersey Business Zoning
When a business is starting a new facility in the state of New Jersey, it must first check the zoning rules of the municipality or county in which it resides. In New Jersey, it is the local zoning office’s responsibility to designate each parcel of land for particular uses. Different types of zoning include:
- Residential single family
- Residential multi-family
- Residential and commercial
If the parcel of land on which a business wants to create its facilities is not designated for commercial use, it needs to check with the zoning office in that municipality to make sure it is okay for the offices to be located at that location. If the property is not zoned correctly for the business to use the location, a business owner or manager must work with the local zoning offices to attempt to switch the zoning designation of that piece of property or find a different location for the business operations.
New Jersey Exit Strategies
In New Jersey, it is wise for a business to have a succession plan in place just as it does a primary business plan. In fact, many businesses in New Jersey create succession plans as part of initial business plans and alter the succession plans as needs change. A succession plan for a New Jersey company might include passing the business on to another family member upon retirement, the sale of the business to turn a profit or to turn the company into a public company and place it into the hands of stockholders.
A qualified New Jersey business law attorney can assist business owners and managers with creating verifiable and conclusive business and succession plans. It is important for such business owners to consult with an experienced New Jersey business lawyer about such business plans to confirm that all plans coincide with state, local and federal laws.