Publications
Publications
- September 2001 (Revised January 2002)
- HBS Case Collection
The American Medical Association-Sunbeam Deal (C): Denouement
By: Ashish Nanda and Kimberly A. Haddad
Abstract
On September 5, 1997, the American Medical Association(AMA) withdrew from a contract with Sunbeam Corporation, the maker of small home appliances. Sunbeam sued the AMA to pay for the damages or to comply with the contract. The fracas led to the dismissal of three top AMA executives. The AMA initiated an investigation into the episode. As a result of the failed deal, the AMA's CEO resigned, and the failed deal eventually cost the AMA an estimated $16 million. A rewritten version of an earlier case.
Keywords
Medical Services; Appliances; Lawsuit; Litigation; Professionalism; Contracts; Corporate Accountability; Organizations; Lawsuits and Litigation; Consumer Products Industry; Health Industry; United States
Citation
Nanda, Ashish, and Kimberly A. Haddad. "The American Medical Association-Sunbeam Deal (C): Denouement." Harvard Business School Case 802-091, September 2001. (Revised January 2002.)