Ford Pinto Case Study



Due 5th of September, 2019
Needed Excellent Quality 

EXTRA CREDIT ASSIGNMENT 01

400 words
Excellent Quality





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Discussion 02- 200 words
Please respond completely to the following questions and input your answers into this discussion: 
Solution


1. After reviewing the Ford Pinto Case Study answer the following questions.
a. If you were the CEO of Ford would you have made the modification to the Pinto to make it safer (and lost revenue) or would you have kept crossed your fingers hoping no one else was injured (thus keeping profits high)?
If I were the CEO of ford motor company I would make changes in the design to prevent people from any injuries or harm. I firmly believe that cars should be made safe.  Harmful cars and projects can never gain success. It can ruin the reputation of a company. One should be extremely cautious about repute of a company because the aim of a company is to earn trust and confidence of consumers. If a company like ford motors start producing such products it is not a good deal. Companies thrive when consumers put their love and trust for the product. Saving money and being cost efficient is not enough. Moreover, such projects like pinto produce concerns among stakeholders regarding the company. I would make all necessary changes to make the product safer and I believe it would have been a smart move because we can see nowadays there is a trend to make vehicles safer. Hoping that no one gets injured and earning high profits is absolutely unacceptable.
b. When a company admits they are wrong or they have made an unethical decision their company usually suffers financially due to several factors. What stakeholders were affected by the faults of the Pinto?
The primary stakeholders are the consumers who are mainly affected by the product’s failure. It is reported that hundreds of people died from fire related accidents by pinto. Other than consumers, company itself faced financial losses due to law suits and other costs.
c. Ford claims that its Pinto met all of the government safety requirements for motor vehicles, but as you now know the Pinto was an extremely dangerous automobile if you were involved in a rear-end collision (and Ford was aware of this). In this case what is the difference between being in compliance with the law and exercising corporate ethics/social responsibility?  
Ford is not exercising corporate ethics or social responsibility because its associate and the company delayed adoption of NHTSA crash standards through successful lobbying. The company claims to be a safe project but this is not actually true and the standards are not applicable.
2. Find an online current event in the news (within the last year) about a product recall, a product that has caused injury to a consumer, or a illegal act committed by a business. Post a link to the article and give a one paragraph synopsis explaining the article. Using the Josephson’s Core Values Model explain how you would make a decision based on the event in the article you read (whether you agree or not with the actual outcome in the article).
The products which caused damage and harm to the consumers include subcompact cars like the fiat 500 FIA and Honda fit. These vehicles were the worst vehicles in terms if performance. When the vehicles were given a tough test in which the front corner of the car hits a pole, tree or another car what happens to it. There were eleven cars which were tested by the insurance institute for highway safety. The results were not acceptable as only one car won an overall “acceptable” rating. The Honda fit and Fiat 500 was the worst performers in the test. The results provoked consumers not to buy these vehicles. The consumer reports suggested that the improved version of these vehicles can pass the test in future (Seetharaman, 2014).

Works Cited

Seetharaman, D. (2014). Most minicars fail new crash test; Fiat 500, Honda Fit worst. Retrieved from Reuters: https://www.reuters.com/article/us-autos-safety-minicars/most-minicars-fail-new-crash-test-fiat-500-honda-fit-worst-idUSBREA0L24W20140122

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        Discussion 03 200 words
Please respond completely to the following questions and input your answers into this discussion: 
1.      Why regulate the economy at all? 
The government’s main way of influencing the market is regulation. Regulations are necessary for well functioning, market based capital economy. As a matter of fact regulations are not always beneficial for the citizens. The aim of regulation is to protect the rights of citizens. This is actually not witnessed because of red tape. The red tape discourages healthy economic competition in the market. Regulations make sure a smooth transfer of goods and services. This is the reason why regulation is required in economies. Without regulation there are chances of confusion, or frauds, and so on. Regulations are intended to promote safety and rights of citizens.
2.      Give five examples of activities you perform in your daily life and explain the agency that controls/impacts your performance of that function.
I perform activities which are regulated by government authorities like I am a seller. I work according to the code of conduct and standards set by the regulatory authorities. This helps me and my consumers from any encroachment. I follow the rule regarding trade of goods when I import goods from different regions of the world. I pay the taxes imposed by the regulatory authorities.
 


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Discussion 04 300 words
Please respond completely to the following questions and input your answers into this discussion.  
1. Go to the EPA - Criminal Enforcement website and find a Major Criminal Case that the EPA has investigated (within the last year). Post a link to the report and give a one paragraph synopsis explaining the outcome of the investigation.
On the EPA, the criminal enforcement website, there was a case of Joseph Michael Kehrer. On 16th Aug, 2018, kehrer was imprisoned for five months. This was due to the fact that kehrer failed to notify regulatory authorities regarding movement of asbestos material. Prior to this incident, kehrer was guilty of felony violation of the federal clean air act. It was specified that kehrer would be monitored for one year after his release from imprisonment. A criminal fine of fifty thousand dollars was also imposed on Kehrer. Kehrer accepted that he was the owner of a building in February and March 2015. This building was formerly the Oakville elementary school. There was a renovation activity during that time. Kehrer removed asbestos which were greater than 160 square feet. It was mandatory to notify this to the regulatory authorities i.e. ten days prior to moving asbestos. Kehrer agreed that he knew this law and it was his mistake that he did not notify the concerned authorities prior to construction activity. This case is a clear example that those who put community on risk because of their unlawful actions have to face consequences for their actions (Clinton County Man Sentenced for Unlawful Asbestos Removal, 2018).
You read all about Bernie Madoff and the elaborate ponzi scheme he created to steal hundreds of millions of dollars from everyday Americans. You might think that this type of high profile, white-collar crime only happens in big cities, think again. Read the following article: Dayton Ponzi Scheme, about the Bernie Madoff of Dayton. After reading the article:
a. Categorize and define the various types of crimes committed by the Defendant.
Madoff committed different frauds like securities fraud, investment advisor fraud, mail fraud, wire fraud, money laundering, theft from employees’ benefit plan, perjury, and so on. These crimes are categorized as embezzlement, fraud, bribery, and cybercrime and so on.
b. Explain the criminal aspects and civil ramifications of the Defendant & actions.
The criminal aspects of the case were that the criminal was imprisoned for 150 years. The criminal indulged in crimes like embezzlement, fraud, bribery, and cyber crime. This caused damage to the public information and property. Madoff engaged in white collar crimes. The consequences of Madoff’s actions were serious enough as the government had to pay back the victims billions of dollars. Some of the amount was paid to the victims by selling his property.
c. Explain what crimes employee’s of the Defendant could be charged with.
They can be charged with bribery, embezzlement, and insider trading.
d. The defendant in Dayton was convicted under Federal Law. Attempt to identify what crimes the Defendant could have been charged with under Ohio law. (Hint: Start here ORC Title 29)
In Ohio law, civil law is different from criminal law. The criminal law is enforced by the government prosecutors to make the community a safe place to live in.  The crimes are based on statutory law which is different from state to state. There are two main features of a crime i.e. actus rea and mens rea. This is actually the wrongful act and the state of mind or intention to commit a criminal act. Madoff’s case would be considered based on these features i.e. mens rea and actus rea in Ohio law. state law would also be considered.

Works Cited

Clinton County Man Sentenced for Unlawful Asbestos Removal. (2018). Retrieved from Environmental crimes bulletin : https://www.epa.gov/sites/production/files/2018-10/documents/aug-sep_2018_bulletin.pdf


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Discussion 05 300 words
Please respond completely to the following questions and input your answers into this discussion:
1.      Tort Reform has long been a hot topic in the United States. Take a look at the American Tort Reform Association website on the Learning Activities page and find a recent initiative (within the past year) that they have been involved in through legislative action. Explain what the legislative reform accomplished and what state enacted the reform measure.
The aim of tort law is to “deter people from injuring others and compensate those who are injured”. There are a broad range of subjects which come under tort law like personal injury, medical malpractice, liability of products, and so on. Tort reform is a popular topic in USA and the protecting access to care act of 2017 is a part of recent initiative through legislative action. This law is meant to improve the healthcare services access by reducing the pressure on the healthcare delivery system. This additional burden is caused by the liability system on the health delivery mechanism (Lewis, 2018).
2. In 2000 Firestone tires had a major problem on their hands, several of their tires were exploding while being driven, causing serious injuries and death to its customers. In fact on May 2, 2000 the National Highway Traffic Safety Administration opened an investigation into Firestone tires based on reports of tread separation on some of its tires. At that point, the agency had received 90 complaints, including reports of 33 crashes resulting in 27 injuries and four deaths. Answer the following based on your independent research on the Firestone case:
a. What type of tort claim would an injured or deceased party pursue against Firestone?
The injured or deceased party can make a claim of negligence on the part of company for product liability. In product liability, the manufacturers, sellers or distributors are held responsible for injuries or death caused by the product. The party is held responsible even if they had no intention to do the wrong act or unaware of any negligence. Manufacturing defects, design defects or failure to warn defects i.e. which can be lessened by giving buyer a warning statement are essential features of product liability claim. The victims can be awarded for damages, usually to bring them in the state they were prior to the incident.
b. What is the goal of tort law and how does it apply to the Firestone case?
Tort law aims to protect civilians from a wrong act which might cause them harm or danger. Tort aims to protect the civilians from dangers and compensate them in case of any harm. In firestone case, the company clearly engaged in a negligent attitude towards consumers and it caused many injuries and deaths. The victims can claim award of damage from the company under tort law.
c. Think back to the Ford Pinto case, how is the Firestone incident similar; and how did Firestone confront the issue once it was discovered?
The ford pinto case was a result of negligence on part of the company. The firestone case is similar. The company concealed safety data and the product caused several injuries and deaths. Once firestone discovered the issue, it speculated that the issue is not in the tires but in the ford explorer itself. Firestone recalled 6.5 million tires.
d. If you worked for Firestone what defenses would you claim?
If I worked with ford I would have claimed award of damage from ford motor company as it endangered the repute of the firestone by claiming that injuries were a result of defective tires by firestone whereas the problem lied in the vehicles. It was found out that ford company concealed safety data.
3. You work at a local electronics store, Electronics Warehouse. While you are working you spot a customer who appears to place something into their backpack (which you think is an item they haven’t paid for). Before they exit the store you yell “STOP THAT THIEF” and another employee tackles the customer at the exit. When the customer is tackled the injuries his knee and is spotted by his current boss. You and the employee escort the customer back to the security office and rummage through his backpack, but unfortunately you don’t find any evidence that something was stolen, so you release the customer and apologize for the mix-up. The next day the customer returns to his job and his fired for being a thief by his boss who witnessed the events at the electronics store the day before.
a. Explain in detail what tort theories the customer can sue the Electronics Warehouse. Would he be successful?
Tort law is based on the kind of compensation the person is entitled to and the kind of damage the company is responsible for. There are four elements of tort law i.e. duty, causation, injury, and breach of duty. The customer can claim negligence on the part of the electronics warehouse and the behavior of specific person. The customer would be successful in the case because negligence is an essential element of tort law.
b. Can you or the other employee be sued for a tort? If so, what tort(s)?
Yes, it is possible because the employees should have informed the boss regarding the matter on time. The boss is not eligible to insult anyone based on his assumptions or false details.
c. What defenses would the Electronics Warehouse raise? Would they be successful?
The warehouse can defend itself that they have apologized to the customer for the confusion and their intention was not to insult the person or call him a thief.


Works Cited

Lewis, K. M. (2018). Tort and Litigation Reform in the 115th Congress. Retrieved from https://fas.org/sgp/crs/misc/LSB10118.pdf