Facing the decline of membership and looking to increase their profits, the American Medical Association (AMA) has signed an endorsement deal with Sunbeam Corp, a leader in the small home appliance industry, in August 1997. In the transaction, AMA would receive significant royalties from Sunbeam in exchange for the use of its printing in-home medical Sunbeam products. Critics argued that this transaction creates a conflict of interests in the AMA. Proponents argue, however, that the deal was a good way for the AMA, to facilitate the pooling of financial trouble. In addition, the deal would be beneficial to patients, because it encouraged people to monitor their health. "Hide
by Ashish Nanda, Kimberly A. Haddad Source: Harvard Business School 16 pages. Publication Date: 08 January 2001. Prod. #: +801326- PDF-ENG
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