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  • September 2001 (Revised January 2002)
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The American Medical Association-Sunbeam Deal (C): Denouement

By: Ashish Nanda and Kimberly A. Haddad
  • Format:Print
  • | Language:English
  • | Pages:9
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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.)
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About The Author

Ashish Nanda

Strategy
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Related Work

    • September 2001 (Revised January 2002)
    • Faculty Research

    The American Medical Association-Sunbeam Deal (C): Denouement

    By: Ashish Nanda and Kimberly A. Haddad
Related Work
  • The American Medical Association-Sunbeam Deal (C): Denouement By: Ashish Nanda and Kimberly A. Haddad
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