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Supreme Court of the United States - 320 U.S. 277
The case involves the prosecution of Buffalo Pharmacal Company and its president, Dotterweich, for violating the Federal Food, Drug, and Cosmetic Act by shipping misbranded and adulterated drugs in interstate commerce. Dotterweich's claim that he should have been given an opportunity to present his views before prosecution was rejected by the Supreme Court. The Circuit Court of Appeals reversed Dotterweich's conviction, but the Supreme Court found that the Act imposes penalties on any person, including corporations, who violates § 301(a), and the individuals who act on behalf of the corporation are responsible for its actions. The Court emphasized that the larger purpose of the legislation must be considered in interpreting it, and the Act was designed to enlarge and stiffen the penal net, not to narrow and loosen it. Therefore, the penalties of the law could be imposed on both the corporation and its agents, except in the rare case where the corporation is merely an individual's alter ego. The court below erred in limiting the scope of the penalizing provisions of the Act to the view that only the principal, not the agent, is expected to obtain a guaranty.
The dissenting opinion argues that corporate officers cannot be held criminally liable for violating the Federal Food, Drug, and Cosmetic Act of 1938 without personal knowledge or participation. The absence of explicit statutory provisions warning corporate officers of their potential liability means that they cannot be held criminally liable under the Act. The failure to mention officers specifically suggests that Congress intended to exempt them from liability, and the history of federal food and drug legislation supports this conclusion. Therefore, applying the sanctions of the Act to the respondent would go against the intent of Congress as expressed in the statutory language and legislative history.
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