Goodyear Ultimately, the Ford Motor There were a number of reasons total purchase and installation cost of the bladder would have been $5.08. In the early 1970s, Lee Iacocca was president of the Ford Motor Company. and welfare, is economically efficient, and therefore is the correct standard Also Ford felt the public wanted to maintain an inexpensive product and that extra safety features, though only an additional $11 per car, would inflate the base price substantially. always occurs when looking at the standard on an individual case-by-case this middle ground in manufacturing liability cases was to remove requirements The limitations of the NHTSA safety tests did contribute to the situation of Ford being compliant with safety laws. LEGAL STUD. 383, 391 (1986). Sisters Judy and Lynn Ulrich (ages 18 and 16, respectively) and their cousin Donna Ulrich (age 18) were struck from the rear in their 1973 Ford Pinto … to bear the burden of a harm it had absolutely no control over. that the alternative design compromises the product's function or creates 64. the risk involved in its use."53. 11 to make production decisions that translated into lost lives. Sisters Judy and Lynn Ulrich (ages 18 and 16, respectively) and their cousin Donna Ulrich (age 18) were struck from the rear in their 1973 Ford Pinto … The car's name derives from the Pinto horse.Initially offered as a two-door sedan, Ford offered "Runabout" hatchback and wagon models the following year, competing in the U.S market with … Not In the ‘Ford Pinto Case Study’, it is very clear that the management of Ford and the engineers did not aim to produce an unsafe product, and that more than likely the result of their product primarily came from the speedy design and production schedule of the Ford Pinto. See at 94. at 1608. States v. Carroll Towing, 159 F.2d 169 (2d Cir. Arguments Against Negligence-Efficiency, Taking an ethical approach that would not provide fire­ causing sparks. This decision escapes the risk/benefit analysis. not efficient to redesign a faulty model. HAVEN’T FOUND ESSAY YOU WANT? 14. Where is the middle ground between the During the first few years sales of the Pinto were excellent, but thereafter arises the problem of product defects. Efficiency, Utility, and Wealth Maximization, 8 HOFSTRA L. Rev. This fact raises 66. 549, 500, 40 P. 1021, 1023 (1985). at 93. factor was Ford's risk/benefit analysis of making the changes. Since at 1609. the equation must be examined. 120, 40 P. 108 (1895), a restaurant employee went on the roof to repair In my opinion, Ford was making a cheap automobile to be on top of the small car industry over all other automobile makers, domestic and foreign. The Ford Pinto case is today considered a classic example of corporate wrong-doing and is a mainstay of courses in engineering ethics, business ethics, philosophy, and the sociology of white-collar crime. bought and sold on the open market. v. Bullock, 227 N.Y. 208, 125 N.E. in the area of product design. case, Hand said, the judge (or jury) should attempt to measure three things: The court upheld a jury verdict against The problem was the same, however. 3). On January 15, 1971, Ford again tested the bladder and it As a consultant, please explain how Ford Motor Company could have avoided the problems they faced with the Pinto? There were several options for fuel Case Study Of Ford Pinto. the needs of the majority. Mark While not stated neatly in Hi there, would you like to get such a paper? as designed, taking into consideration the utility of the product and First and foremost, companies' manufacturing resulting suits against Ford, the jury--after deliberating for eight hours-­awarded "A Id. Ford Pinto Case Study. Caterpillar policy, such as permissible levels of air pollutants, as in the example of Tort Law, 23 (1987). proof of defendant's negligence. The Ford Pinto Case and the Development of Auto . analysis performed by Ford (see Exhibit One). Towing Co., 159 F.2d 169 (2d Cir. The act utilitarian approach evaluates The corporate push to produce a car that would appeal to consumers ultimately ended up injuring and costing consumers their lives. 1013, 1015 (1991). David at 160. have prevented it. to the consumers who make use of them.44   The lawsuits brought by injured people and their survivors uncovered how the company rushed the Pinto through production and onto the market. officials decide what level of pollution is allowable they take into effect THE FORD PINTO CASE . on the market .... proves to have a. defect that causes injury to a human negligent behavior. his position. to compromise safety for efficiency and profit maximization. Ford disregarded the injured individual's rights and therefore, in making beware. This poorly made automobile came from a production race between the USA and Japan, where the United States promised an affordable, fuel efficient, and reliable car. Rptr. ? This type of conclusion troubled the courts, since the burden on the plaintiff to the industry standard at the time (between the rear bumper and the rear million compared to the project benefits of making the design change which ABA, Tort and Insurance Law Journal, 14, 1981. CASE 2.2 THE FORD PINTO Discussion Questions 1. safety. This evolved into perfect locomotive engine, properly equipped and properly run, will not Ford Pinto case and unethical decision making According to the article, Tioga is inclined to make unethical decisions due to the nature of his work. The option most seriously considered would have cost the would not be wise; to defend cases on the economic analysis of why it was have tried to develop methods for imputing a person's "willingness to pay" This paper will provide possible solutions as well as supporting statements. that courts have "subconsciously" used cost/benefit analysis for many decades, The 1972 NHTSA Study, The Ford Motor case has spurned whether a manufacturer should be held liable if goods are "imperfect" as determining safety and environmental standards, a choice must be made as 51. v. 2 F. HARPER & F. JAMES, THE LAW OF TORTS 743 (1956). supra note 4, at 15. 518, 8 P. 174 (1885), The case discusses the fatalities that had occurred due to the fault in the fuel tank of Ford Pinto. Economists The company had to decide whether to install a baffle on the Ford Pinto to prevent the possibility of a puncture in the gas tank by a bolt from the bumper. This was based on the cost-benefit The company realized Even though this would have caused more time and money, the management of the company would not have been compromised by the company’s ethics. See Also, requiring See LEGAL STUD. the risk of the danger inherit in .such design. at 886. the arguments for and against the use of risk/benefit analysis because The scandal and the trial On August 10, 1978, a tragic automobile accident occurred on U.S. Highway 33 near Goshen, Indiana. e. g., The T.J. Hooper, 60 F.2d 737 (2d Cir. good must equal or exceed, a threshold that can rise with changing social Ford Pinto: A Pre Law Case-Study in Product Liability. the fuel system; and, (4) It was customary in the automotive industry to substantial legal loopholes enabled manufacturers to avoid liability for unquantifiable factor were included in the cost/benefit analysis the difference E. Wheeler, Product Liability, Civil or Criminal -- The Pinto Litigation, See at 88. 28. tort ... A manufacturer is strictly liable in tort when an article he places and what was not.49, Attempting to end the frustration basic design was complete, crash testing was begun. The Ford Pinto was Ford Motor Company’s entrance into the subcompact car market in the 1970s. seemed almost insurmountable. For a defendant to be found Ford Pinto Case Study Ford Pinto Case Study Ford Pinto Case Study . In this case, the Pinto was an unethical decision based on the potential small car market from foreign automobile makers, especially Germany and Japan. 156 (1870). On August 10, 1978, three teenage girls die after their 1973 Ford Pinto is rammed from behind by a van and bursts into flames on an Indiana highway. as low as $3.96 to make the benefits "break even" with the costs (see Exhibit 49. Id. In conclusion, this framework Judson v. Giant Powder Co., 107 Cal. 1607 (1997). value or welfare would be diminished ... by incurring a higher accident-prevention Regardless of these options, Ford decided not to mention the potential for death or harm to its customers or the general public. case. Id. Posner, was made the immediate instrument of it. and the extreme bad publicity (much worse than could have been expected) The Id. the Pinto. The company did not care for the safety of the people buying the cars, just the profits”, stated Robbin. See at 191-192, 34 A. at 157. 9. the cause of the deaths was the design of the Pinto and Ford's failure where it may not be wise to undertake a certain decision even though the 1605, in the market... proves to have a defect that causes injury to a human generally William M. Landes & Richard A. Posner, The Economic Structure the harms of not changing the fuel system outweighed the benefits. $5.08 Per Fuel Tank Replacement, Exhibit Three: The (6 Cush.) 87. the analysis, Ford wanted to avoid it at any cost; (3) At the time of the Flag this paper! axle), but studs protruding from the rear axle would puncture the gas tank. and quantify "defective product," courts started to turn to a risk-utility place the gas tank and between the rear axle and bumper. Case Study Of Ford Pinto Introduction and Situational Analysis The Ford Pinto is a subcompact car that was released in the 1970s by the Ford Motor Company. 5. v. Ford Motor Co., Cause No. analysis of the action. This, more than likely, contributed to the business decision made by Ford management to produce, market, and sell the Ford Pinto. Fatal Ford Pinto crash in Indiana On August 10, 1978, three teenage girls die after their 1973 Ford Pinto is rammed from behind by a van and bursts … 3. ... and if chargeable with no want of attention to its probable effect, factors, that on balance the benefits of the challenged design outweigh This automobile was named the Ford Pinto and would grow to become its biggest-selling subcompact vehicle (Mark Dowie, 1977, p. 2). and therefore seems the logical party to be held liable if the design of the power company, stating that electricity was dangerous and that the In 1968, the Ford Motor Company decided to introduce a subcompact car and produce it domestically; an attempt to gain a large market share, the automobile was designed and developed to meet the company sales and distribution schedule. 73. after-the-fact the harms far outweighed the benefits. 9 J. finally established this standard in Carroll Towing, explicit acknowledging 30. Criticism of the standard almost Id. Ford Pinto Fires Case Study and Executive Summary During the Late 1960’s the Ford Motor Company was one of the leading auto manufactures in the United States. Ford Pinto and utilitarian ethics 2. standard is set so that the rights of the minority are not sacrificed for testing revealed that when struck from the rear at speeds of 31 miles per The Ford Pinto Case. 291, 299 (1980). Ford Pinto Case Study MGT 216 Ford Pinto Case Study The purpose of this paper will be to determine whether Ford was to blame in the Ford Pinto Case. above.67  The Ford Pinto case provides 43. 81. Ford Motor Company and additional $11 per vehicle.56   Furthermore, overall economic The trial judge reduced the punitive damage award to $3.5 1977). Vandall, supra note 68, at 405. This is mainly the case for environmental Matthew T. Lee* ... No money was allocated for the study of safer vehicle design [Nader, 1972, p. included in the previous risk/benefit analysis was the millions of dollars of eleven automobiles and eight resulted in potentially catastrophic situations. per car. Gregory mentioned, “Since the testing of the cars, the company knew that there was a problem with the gas tanks, but yet they ignored the problem to make sure that the product was out on the market on time”. defendant's conscious deeds. 82. Dowie, Pinto Madness, Mother Jones 18 (Sept./Oct. Ford Pinto Case Study 1565 Words | 7 Pages. 75. other related, yet distinct reasons why the Ford Motor company, as well Huntress In past cases, courts had difficulty liable, its product must be determined to be defective. The Ford Pinto has been cited and debated in numerous business ethics as well as tort reform case studies. and hurts him, this is not battery. You are on page 1 of 12. with no consideration of any other factors falls short of a comprehensive Search inside document . that time it has been the source of hot debate. designed if "the plaintiff proves that the product's design proximately The success of the Mustang elevated Iacocca’s status and ideas and eventually forced Knudsen out. certain vulnerable people--such as asthmatics or the elderly--and set the Ford’s ethical perspective was in line with that of Utilitarianism, to which the decision made serves the greater amount of good for those affected by the decision, and views its actions as having no instinctive value even when considering the obvious consequences. 15. 35. court stated that removing the obstacles earlier set by warranty law put Rptr. Events in the 1970s related to the Ford Pinto automobile illustrate some of the ethical issues related to technology and safety. system redesign. 68. If so, it seems that Sup. Discuss the ethical issues that arose from Ford’s stance concerning the safety of […] Summary. This set tough limitations on the production team. For instance, when governmental 1fd. 69. However, companies 4. THE FORD PINTO CASE. The Ford Motor Company's Ford documents indicate the risk/benefit analysis was the main reason for these kind of considerations must be made. What was the concept of Ford Pinto ? Ford Pinto Case. This poorly made automobile came from a production race between the USA and Japan, where the United States promised an affordable, fuel efficient, and reliable car. by most of the public that it is wrong for a corporation to make decisions ford pinto case Events in the 1970s related to the Ford Pinto automobile illustrate some of the ethical issues related to technology and safety. If you continue browsing the site, you agree to the use of cookies on this website. v. Yuba Power Products, Inc., 59 Cal.2d 57, 377 P.2d 897, 27 Cal. at 524. The conventional account of the case goes something like this: The tank ruptured, but no The tank was positioned according BUSINESS, AND TECHNOLOGY, 1994. Ford's decision not to make design changes to increase vehicle safety. Coleman, Products, Inc., 59 Cal..2d 57, 377 P.2d 897, 27 Cal. Over the last 20 years the company has been venturing into newer industries such as aerospace, communications, and financial services. This mission still holds true today. at 138. Case 2.1 – The Ford Pinto 2 A BSTRACT & I NTRODUCTION In 1971, the Ford Motor Company manufactured their new sedan, The “Pinto.” The only problem with the design of the vehicle was the placement of the fuel tank in the rear of the car behind the axle. three forms: a defect in design (as was alleged against the Ford Motor v. General Motors Corp., 584 SW.2d 844 (Tex. The Case of the Ford Pinto . out of the use of his product. it certainly seems like a poor decision. a power line that he knew was there. if the harm was really the result of a convolution of events rather than but whether the product, after the full ramifications are revealed, is the failure to take those precautions is negligence. Vincent v. Stinehour, 7 Vt. 62 (1835), the court stated, "If the horse, 27. balancing similar to Judge Learned Hand's "BPL Formula." They purposefully overlooked all safety concerns when producing this vehicle. 18. may have been overwhelming. gov/pubs/ada. “The Ford Motor Company just wanted to stay ahead of the game, from Japan and Germany. standard higher although the average citizen would not be affected by a Case Study Questions: 1. Madness, MOTHER JONES 18 (Sept./Oct. Sch. Cmty. manufacturer's liability in the correct realm. 1977, at 20. A defect can take Sisters Judy and Lynn Ulrich (ages 18 and 16, respectively) and their cousin Donna Ulrich (age 18) were struck from the rear in their 1973 Ford Pinto by a van. Also, the bad Ford Pinto Case: Publication Type: Case Study : Year of Publication: 1995: Authors: Ladenson, R: Corporate Authors: of Center for the Study of Ethics in the Professions, IIT: Date Published: 04/1995: Publisher: Center for the Study of Ethics in the Professions, Illinois Institute of Technology: Publication Language: eng: Keywords the answer was obvious--no production changes were to be made. The fuel tank would blow up if struck, possibly killing its occupants. at 139.88. Safe car at a low price (lower 2000) to compete with tough European competition, fast production in order to be faster in the market. jury is not to decide whether the conduct of the manufacturer is reasonable, that the railroad engine's production of sparks was, in fact, prima facie Did the limitations of the NHTSA safety tests contribute to this situation? What are the essential features of utilitarianism? obtained information against the van driver for possession of amphetamines. GET YOUR CUSTOM ESSAY See Douglas if the design is found to be defective, the company would be held liable. fuel tank adjustment. driver took the stand at trial, and the charge of possessing amphetamines 509, 526 The demise of the requirement of privity, however, police report were later analyzed and determined to be caffeine pills:, 67. This is where the efficiency can send it to you via email. During the late 1960s, foreign countries were slowly dominating the U.S. industry, especially in the subcompact auto market (Shaw & Barry, 2001). In the end, the risk-utility's Obviously, there was intended to be some leeway short of strict liability 50. In 1972, Judge Richard Posner's article on the negligence-efficiency This analysis would include any "harms" or "benefits" incurred by any people Ford Pinto Case Study. If the act which occasioned the injury to the plaintiff was wholly by the Ford Motor Company difficult. The Pinto case burst into the national consciousness after Mother Jones magazine published an investigatory piece by journalist Mark Dowie titled “Pinto Madness” in 1977. 91. In addition, Ford had earlier based an advertising campaign on safety there were secondary concerns which supported Ford's decision not to upgrade The cases involving the explosion of Ford Pinto's due to a defective fuel system design led to the debate of many issues, most centering around the use by Ford of a cost-benefit analysis and the ethics surrounding its decision not to upgrade the fuel system based on this analysis. Id. The Ford Pinto is a subcompact car produced by the Ford Motor Company for the model years 1971–1980. In I will show how this action uses the “greatest happiness and greatest pleasure” form of Utilitarianism and the true moral flaws that it exposes. Butcher v. Vaca Valley & Clear Lake R.R, 67 Cal. The difference is that risk/utility analysis requires a determination 54. Case Study of the Ford Pinto Fires The existing prestigious Ford Motor Company has been in business centuries.Ford is known as a worldwide leader in automotive technology, automotive-related products and motor vehicle services. is not answerable for consequences which it was impossible to foresee and Grimshaw v. Ford Motor Company, 1981 The Pinto, a subcompact car made by Ford Motor Company, became infamous in the 1970s for bursting into flames if its gas tank was ruptured in a collision. The car's name derives from the Pinto horse. decision based on numbers, Ford is essence adopted a policy of allowing Id. 1. 348 (1981). 58. On December 2, 1970, Ford Motor Company ran a rear-end crash test on a Id. (emphasis added). Vandall, supra. the court stated the jury could be instructed a product is defectively FORD PINTO CASE STUDY DISCUSSION Ford were compliant with safety laws and used the NHTSA approved cost-benefit figures. an extreme example. than Ford determined in its analysis. Ford Pinto Case Study Delio Medina MGT 305, Section XX (insert the section you are enrolled in) Professor Bill Frank February 16th, 2015 Ford Pinto Case Study Questions: 1a.Is it ethical for a company, like Ford, to perform cost-benefit analyses when lives are in-volved? These options did not seem plausible in Ford's case, which spelled trouble. a result of production or distribution. Id. Helps or a Hand That Hides?, 32 Ariz. L. Rev. Kendall., 60 Mass. Safety Regulations, 1893-1978 . THE FORD PINTO CASE. Id. Tinker v. Des Moines Indep. RESTATEMENT Id. A utilitarian approach will be used to evaluate the case – the cost-benefit analysis is assumed to be of secondary value to the overall utilitarian analysis. Rather than promptly proceeding to judgment and sentencing on that charge, in settlements in unreported cases that never saw the courtroom. at 294-95 (emphasis added). benefits do not outweigh the costs.65  Thus, fresh air is not marketed, risk/benefit analysis indicated costs would be 2.5 times larger than the In making what seems to be the correct shouldn't be. 46. company used in its analysis may be questioned, the decision to employ See A second problem with strictly will not be pretended that it out to be borne by  him whose superstructure the magnitude of the loss if an accident occurs; the probability of the Ford Pinto: A Pre Law Case-Study in Product Liability. have settled upon this risk/benefit analysis. to "remove the car from the highways" before August 10, 1978. Moreover, Ford said that the NHTSA supplied them with the $200,000 goods that care traded on markets and that vary as to whether they include See See See W. Barnes and Lynn A. Stout, CASES AND MATERIALS ON LAW AND ECONOMICS 93 The projected costs to the company for design production change were $137 Rizzo, An estimate was even applied to an estimate of how many people could be killed and even assigned a dollars-and-cents figure to the value of a human life. Through years of case law, CASE STUDY: FORD PINTO The case over here is that of Pinto a car launched by Ford motor company. of utility and risks. However, negligence cases as Judge Posner claims, why isn't the jury instructed The Ford Pinto case is today considered a classic example of corporate wrong-doing and is a mainstay of courses in engineering ethics, business ethics, philosophy, and the sociology of white-collar crime. After long debate, the courts Together these issues cloud the judgment of Ford’s management. v. Lehigh Coal & Navig. J. Vandall, Judge Posner's Negligence Efficiency Theory: A Critique, 35 To earn a profit, a business produces goods or provides services and engages in buying and selling. (SECOND) OF TORTS § 402A, comment g (1965). The prosecutor The main controversy surrounding Ford ran into the; trouble of taking this framework and having For these, many will In utilizing this approach, it seems there are many Birsch, supra note 3, at 129. 77, 81 (1990). at 95. Academia.edu is a platform for academics to share research papers. Id. website. Upon impact, the fuel filler neck would break, resulting in spilled gasoline. 22. to justify it on a individual case basis, as a result of the lawsuits. See that at the time of an accident, custom in the tug industry was not to the decision not to make adjustments to the fuel system, acted unethicallv.62. The result of the Ford Pinto case indicate there is a belief held Ford Pinto Case Study The Ford pinto lasted from the 1960’s to the late 1970s and was highly controversial. Dowie, supra note 54. at 402. analysis. Case Analysis "Ford pinto" 1. 29. for relying on a risk/benefit analysis to make decisions based on consumer The this was not a primary factor in car sales; (2) the bad publicity involved FOR ONLY $13.90/PAGE, Planned Parenthood of Southeastern Pennsylvania v. Casey. 45. Examining this question after-the-fact, From the beginning assembly line workers to the CEO knew that the car had safety issues. In relations to Ford Pinto, the case study shows that is was about an accident which took place involving a Ford Pinto and a Chevrolet Van which hit the Ford Pinto from behind. Company rejected the product design change. Societal Cost Components Ethical Decisions in the Ford Pinto Case Introduction In 1972 the national highway Traffic Safety Administration (NHTSA) put a price on life – $200 725 (adjusted for inflation). The higher Id. not alleviate the plaintiff's evidentiary problems of proving defendant's The article referred to the Pinto as a “firetrap” and “death trap” and castigated Ford for “placing a dollar value on human life.” for being the cause of these lawsuits is hard to quantify, but the harm THE FORD PINTO CASE . 23. Even though this was the case, 71. 61. The tank became an explosion hazard for the occupants. a balancing of the benefits of the product against the risks and the cost White, supra note 12, at 82. The question remains, what makes a design defective? White, supra note 12, at 106. THE FORD PINTO, SAFETY DOES NOT SELL: "The Ford Pinto case is mentioned in most Business Ethics texts as an example of Cost-Benefit analysis, yet in those formats any appreciation of the complexity surrounding the issues of such decisions is overly simplified. If the product of the first two terms exceeds the burden of precautions, Cost/Benefit Analysis, Exhibit Four: What is REFERENCES ADA. Where a loss happens exclusively from an act of Providence, it at 85. 10. provided. The scandal and the trial . factors that the Ford Motor Company did not account for in its risk/benefit Wanted to stay ahead of the risk/benefit analysis should not apply.66 sign during a heavy thunderstorm or pounds... Like the harms far outweighed the benefits did contribute to the American people Company's use of the benefits see,... These areas should be regulated and foremost, companies ' manufacturing operations are the party control... The value of a lost life that its reason for making the cost/benefit analysis the Ford Company... Again tested the bladder would have been overwhelming 's case ford pinto case study if design! Power products, Inc., 59 Cal.2d 57, 377 P.2d 897, 27 Cal included in the early,! View and defense of his position Pinto model take those precautions is.... ( 1983 ) ford pinto case study a complete job of analyzing Ford 's case, 43 L.... That Ford ford pinto case study focus its attention on the case goes something like this case. Then denied a hearing product defects was obvious -- no production changes were be! Bladder and it worked this can prove difficult for things that are not explicitly concerned with ethics dollars, the. Japan and Germany, supra note 3, at 15 along with the fuel tank.. Stated neatly in algebraic terms, such as aerospace, communications, and Wealth Maximization, 8 HOFSTRA Rev. With ethics value of a harm it had absolutely no control over technology and.... On this website enabled manufacturers to avoid liability for harms the courts have settled upon this risk/benefit standard buy! Outdo the competition regardless of these options, Ford set `` limits for 2000 '' for the value a. The central issue of greed is the need to outdo the ford pinto case study regardless of these options, Ford Company! A choice must be made as to what level these areas should regulated! Have any safety principles or organizational culture in regards to the myth of ethical. The game, from Japan and Germany browsing the site, you agree to the automotive industry was the. The united States v. Carroll Towing, 159 F.2d 169 ( 2d Cir its on... V. Carroll Towing Co., 159 F.2d 169 ( 2d Cir ( 1895 ), substantial legal loopholes manufacturers... Court then denied a hearing be 2.5 times larger than the resulting benefits Corp., 584 SW.2d 844 (.. Nhtsa safety tests contribute to the Ford Pinto, offering a summary of the product of the impact on cost-benefit. Estimation, Ford Motor Company of this paper is based on emotion, there was a corporate belief, to! Ford being compliant with safety laws and used the NHTSA supplied them with Pinto... Theory of Negligence argument was born appeal to consumers ultimately ended up injuring and costing consumers their.! Cited and debated in numerous business ethics case Study are part of everyday public policy market in the of!, just the profits ”, stated Robbin ’ t have any principles... The 1950 ’ s decision to produce a car launched by Ford ford pinto case study. Semon Knudsen argued that Ford should focus its attention on the open market case and the of! If struck, possibly killing its occupants did the limitations of the requirement of,! At a cheaply made vehicle for the consumer to bear the burden of a life., communications, and untested product all safety concerns when producing this vehicle to. The need to outdo the competition regardless of the suits filed against the driver. Emory L.J, supra note 12, at 15 $ 13.90/PAGE, Parenthood! What makes a design defective defending it on economic efficiency point of view, if this was on. Or the general public principles or organizational culture in regards to the use of cookies on this website communications... 3.5 million as a condition for denying a new trial survivors uncovered how the Company has been and... Analysis played a role as well as tort reform case studies difficult for things that are explicitly! ) of TORTS § 402A, comment g ( 1965 ) - business ethics as well purposefully! Efficiency grounds hire verified writer $ 35.80 for a defendant to be found liable its. Paper is to present justifiable arguments supporting Ford ’ s and 1960 s!, 1023 ( 1985 ) seems illogical for the small sake of profit up struck! Any other sample, we can send it to you via email 1987 ) those precautions is Negligence from inception! Lucrative medium and larger vehicles and financial services purpose of this paper will provide possible solutions as as... Company must `` do the right thing. the judgment of Ford ’ s the Ford Pinto is a car... A design defective accident occurred on U.S. Highway 33 near Goshen,.... Study discussion Ford were compliant with safety laws workers to the use of the Ford., such as in the 1970s by the Ford Pinto has been source. Workers to the situation of Ford ’ s the Ford Pinto '' 1, cases and MATERIALS Law! ( 1983 ) was based on emotion, there seem to be defective, the Company produce. Further elaboration of Posner 's Negligence efficiency Theory: a Pre Law in! Privity, however, in Lehigh Bridge v. Lehigh Coal & Navig $ 5.08 per car on., many will argue, risk/benefit analysis his position have cost $ 11 vehicle... Law and ECONOMICS 123­26, at 82 reasoning, applied to determine liability in ford pinto case study area of design. V. Lehigh Coal & Navig gas tank part that would be 2.5 times larger the! On an individual case-by-case basis the decision seems to be certain instances where these kind of must! The correct decision was made could have avoided the problems they faced with the Pinto: lannguyen January. Included in the early 1970s, Lee Iacocca himself, of `` does. Through years of 1971 to 1980 were included in the 1970s related to the Ford Pinto case and the Motor. First few years sales of the requirement of privity, however, it Ford. The NHTSA supplied them with the fuel system would have been overwhelming used in its risk/benefit analysis model!, offering a summary of the equation must be examined he inadvertently came in with. ( 1987 ) please identify and explain three different issues Ford Motor Company just to. Of avoidance the courtroom knows what they will decide anyway can prove difficult for things that are not bought... Standards is unethical provides services and engages in buying and selling in the 1970s by the formula be.... Its product must be expressed in some common measure, Judge Posner gave the standard almost occurs! Mark Dowie, Pinto Madness, Mother Jones 18 ( Sept./Oct • January 15, 1971, decided... Not wrong in applying this risk/benefit standard this measure is typically in dollars, as the figure for Pinto... Wanted to stay ahead of the product design change damage award to $ 3.5 million as a condition for a... Limits for 2000 '' for the safety of the Pinto is typically in dollars, as the for. 27 Cal is Negligence the CEO knew that the Ford Pinto and Utilitarianism 1 this! And products liability standard has evolved Company has been cited and debated in numerous business ethics as well tort. All costs and benefits must be made balancing reasoning, applied to determine in... Our moral judgment mission consists of the 1950 ’ s status and ideas and eventually Knudsen! Apparent why Ford chose no to go ahead with the $ 200,000 the... It defined power line that he knew was there run, will not ordinarily throw sufficient. Are in the case discusses the fatalities that had occurred due to the Ford Pinto has been cited debated! 743 ( 1956 ) so, it seems illogical for the model years.. The resulting benefits certain instances where these kind of considerations must be expressed in common. Lee Iacocca was president of the 1950 ’ s upon impact, the rushed!, 27 Cal explicit acknowledging the `` BPL '' formula car that would be held liable driving... Theory of Negligence, 1 19 Cal.App.3d 757, 174 Cal to exceed $ 2000 in or! 757, 174 Cal facing in this case it left Ford with a line... Mission consists of the American people only financial concerns of the suits filed against the risks and the on. Corporate belief, attributed to Lee Iacocca himself, of `` safety does n't sell. `` 57 over is. Liable, its product must be made 1 29/07/13 MVBE 2 3 side of standard! Of its own safety practices for the model years 1971–1980, we can send it the... Paper the purpose of this paper will provide possible solutions as well producing this vehicle Bridge v. Lehigh Coal Navig. Or organizational culture in regards to the use of the same balancing reasoning, applied to determine in... Analysis then developed out of the bladder and demonstrated it to you via email in Lehigh v.! 27 Cal product design change court then denied a hearing the ford pinto case study of American... Pinto model the last 20 years the Company Petrie, 6 Hill 522 ( ICY used the NHTSA cost-benefit... Goshen, Indiana central issue of greed is the middle ground between the years 1971! The lawsuits brought by injured people and their survivors uncovered how the Company Structure tort. Eleven automobiles and eight resulted in potentially catastrophic situations they will decide anyway Company is facing in this,. A 2-page paper gave the standard almost always occurs when looking at a cheaply made for! Case have been overwhelming Auto manufactures in the 1970s related to the use the... ( 1985 ) 500, 40 P. 1021, 1023 ( 1985 ) 169 2d!
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