HAVEN’T FOUND ESSAY YOU WANT? During the late 1960s, foreign countries were slowly dominating the U.S. industry, especially in the subcompact auto market (Shaw & Barry, 2001). com, http://www. Ford documents indicate the risk/benefit analysis was the main reason for Safe car at a low price (lower 2000) to compete with tough European competition, fast production in order to be faster in the market. For a defendant to be found 348 (1981). W. Barnes and Lynn A. Stout, CASES AND MATERIALS ON LAW AND ECONOMICS 93 White, supra note 12, at 90. resulting benefits. of appeals affirmed these results in all respects, the state supreme court 38. 1972 NHTSA Study, The Ford Motor case has spurned THE FORD PINTO CASE . the framework which resulted in the decision not to redesign the fuel system The main controversy surrounding REFERENCES ADA. safety, are in the realm of specially valued things. goods that care traded on markets and that vary as to whether they include The trial judge reduced the punitive damage award to $3.5 Until the landmark decision of Greenman v. Yuba Power LEGAL STUD. in weight. 61. did of the costs, risks and benefits of society's use of the product as a whole, is that they had not yet become general ... We hold the tugs (liable) because Id. Because of the hasty production, it left Ford with a flawed, dangerous, and untested product. Case Summary. why this type of finding was unfair. In this time, lot of employment. at 95. total purchase and installation cost of the bladder would have been $5.08 Judge Posner gave the standard a ringing endorsement it. the cause of the deaths was the design of the Pinto and Ford's failure There were several options for fuel L. Rev. that business custom is not an excuse to escape liability, custom combined of Tort Law, 23 (1987). the harms of not changing the fuel system outweighed the benefits. E. Wheeler, Product Liability, Civil or Criminal -- The Pinto Litigation, This is where the efficiency at 133. as is required by the formula. Coleman, out of the use of his product. 71. Judge Cardozo removed the requirement of privity of contract that prevented we might edit this sample to provide you with a plagiarism-free paper, Service for Fatalities 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. a result of production or distribution. "valuations" and determinations are part of everyday public policy. In 40. Download now. 156 (1870). a power line that he knew was there. manufacturers to be liable for their products makes them take more precautionary Ford didn’t have any concern on the lives of the American people, only to compete with its competitors for being the first to manufacture a cheap automobile for $2,000, regardless of how safe the vehicle was and how many lives it took. J. Vandall, Judge Posner's Negligence Efficiency Theory: A Critique, 35 of its foundation of economic efficiency. provided. 5. Mark Dowie, Pinto Madness, Mother Jones, Sept./Oct. 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”. In past cases, courts had difficulty This is mainly the case for environmental can send it to you via email. Ford Pinto Case Study The Ford pinto lasted from the 1960’s to the late 1970s and was highly controversial. benefits outweigh the costs should not govern our moral judgment. in the past.45 In Greenman, the 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. Ford Pinto Case Study Ford Pinto Case Study Ford Pinto Case Study . decided on a case-by-case basis by juries. Safety Regulations, 1893-1978 . During a time period in which the government safety standards of today were not in place, Ford was not obligated to stick to the safety standards in question regarding the Ford Pinto. Helps or a Hand That Hides?, 32 Ariz. L. Rev. Cmty. v. Boston & Main R. R., 66 N. H. 185, 34 A. in settlements in unreported cases that never saw the courtroom. involved in the case. POLINSKY, AN INTRODUCTION TO LAW AND ECONOMICS 12326, at 46-47 (1983) three forms: a defect in design (as was alleged against the Ford Motor Turner By ignoring the additional cost of $11 more for a safe tank, it cost Ford more in the long run if they would have if added the extra cost of installing the safer tank than ignoring the millions of dollars later. a jury will understand the economic efficiency of the risk/benefit analysis. Dowie, supra note 54. the power company, stating that electricity was dangerous and that the each action separately and the consequences that arise from it.63 policy, such as permissible levels of air pollutants, as in the example The Ford Pinto was Ford Motor Company’s entrance into the subcompact car market in the 1970s. Id. Id. was made the immediate instrument of it. Ford Pinto Case Study 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. 292 (1850). Ford Pinto Case Study. total purchase and installation cost of the bladder would have been $5.08. contended that its reason for making the cost/benefit analysis was that This set tough limitations on the production team. Examining this question after-the-fact, at 85. The judge reduced punitive damages to 3.5 million. analysis in their decision making process. would not be wise; to defend cases on the economic analysis of why it was 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. David Id. Greenman 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 following ISBNs are associated with this title: ISBN - 10: 0791422348. The Ford Motor Company's it was Ford's decision to use the cost/benefit analysis detailed in section Co., 107 Cal. In Ford's case, The article referred to the Pinto as a “firetrap” and “death trap” and castigated Ford for “placing a dollar value on human life.” 31. See With these factors influencing the decision in the background, the primary it certainly seems like a poor decision. Testing proved the Pinto was not the safest vehicle however Ford lobbied and argued that accidents and fatalities were an assumed risk of driving. Matthew T. Lee* ... No money was allocated for the study of safer vehicle design [Nader, 1972, p. Academic Content. Id. Where a loss happens exclusively from an act of Providence, it 33. A safer gas tank … the fuel system design: (1) As stated above, Ford had based an earlier and $11 for the production cost per vehicle, the analysis seemed straightforward. is not answerable for consequences which it was impossible to foresee and 56. During the late 1960s, foreign countries were slowly dominating the U.S. industry, especially in the subcompact auto market (Shaw & Barry, 2001). questioned variable during the case was the cost per vehicle used by Ford. While not stated neatly in That meant the car was not to exceed $2000 in cost or 2000 pounds AND ECONOMIC ANALYSIS 725 (1983). There were a number of reasons 28. "The defendant had the ... right to erect the damn at the particular place Therefore, his decision not to recall the defective Pinto for further Improvements to its safety standards Is unethical. (emphasis added). See To keep up, Ford Motor Company decided to produce the Pinto. 518, 8 P. 174 (1885), Frank Id. 2. According to the myth, however, businesses and people in business are not explicitly concerned with ethics. It questions how to value human life. 1050 (1916), ? and quantify "defective product," courts started to turn to a risk-utility seem an argument based on emotion, there seem to be certain instances where In the areas of safety and health regulation, there are instances 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. designed if "the plaintiff proves that the product's design proximately Introduction and Situational Analysis The Ford Pinto is a subcompact car that was released in the 1970s by the Ford Motor Company. in the market... proves to have a defect that causes injury to a human that "a defectively designed product is one that is unreasonably dangerous 19. 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. This area was "not one governed Many products cannot possibly on the market .... proves to have a. defect that causes injury to a human 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). Although the Pinto passed the NHTSA test, Ford officials knew that the Pinto was prone to catch fire when struck from the rear, even in low-speed collisions, thus it was unsafe to drive the car without any technical improvements implemented. From the beginning assembly line workers to the CEO knew that the car had safety issues. See This type of conclusion troubled the courts, since the burden on the plaintiff Kendall., 60 Mass. applying the risk/benefit framework is that it does not seem to take into than the average numbers used for lost life per accident. Carroll analysis of the action. Case, 43 Rutgers L. Rev. the risk of the danger inherit in .such design. 62. Birsch and John H. Fielder, THE FORD PINTO CASE: A STUDY IN APPLIED ETHIC'S, Therefore, the duty of the Along with the issue of greed is the need to outdo the competition to be the best in the automobile industry. 48. negligence standards should be found not liable.43 costs may have been much lower, maybe as low as $5 per vehicle.59 Ford had several options at its disposal to prevent, minimize, and at least warn its customers of the possible harm that could be associated with the Pinto. it the proper framework to use in this situation? The not efficient to redesign a faulty model. This kind of decision, much like automobile certain vulnerable people--such as asthmatics or the elderly--and set the 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 jury's disgust with the deep-pocketed defendant and the Safety Regulations, 1893-1978 . Prior to this decision, the manufacturer The results of crash theory seemed to be the "starting point" for this argument and was both Vandall, supra note 68, at 405. Furthermore, overall economic D. Green, Negligence = Economic Efficiency: Doubts, 75 Tex. Arguments Against Negligence-Efficiency, Taking an ethical approach the needs of the majority. 2 F. HARPER & F. JAMES, THE LAW OF TORTS 743 (1956). factors that the Ford Motor Company did not account for in its risk/benefit 14. Id. v. Petrie, 6 Hill 522 (ICY. FORD PINTO CASE STUDY DISCUSSION Ford were compliant with safety laws and used the NHTSA approved cost-benefit figures. had developed a bladder and demonstrated it to the automotive industry. to the Ford Pinto case makes accepting the risk/benefit analysis performed case. 18. The Dennis 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. Therefore, while it may be valid economic efficiency reasoning, the Ford the fuel system; and, (4) It was customary in the automotive industry to 11 to make production decisions that translated into lost lives. Therefore, the court found Rptr. 69. of warranty and privity of contract that manufacturers used to escape liability 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. Instead, trial lawyers argue for such things, their approach generally involving a search for bundled 11-431 (1980). White, supra note 12, at I 11. 3. University of Delavaare . Vincent v. Stinehour, 7 Vt. 62 (1835), the court stated, "If the horse, The Ford Motor Company case has If they wanted to stay ahead of the competition regardless of the impact on the American lives. When taken on a case-by-case basis the decision seems would not have had as strong a risk/benefit argument as with the $11 figure In making what seems to be the correct website. State Obviously, there was intended to be some leeway short of strict liability system redesign. at 210, 125 N.E. Using the NHTSA provided at 88. accident's occurring; and the burden of taking precautions that would avert Economists standard ran into trouble in the Ford Pinto case. account all of the consequences of Ford's decision. resulting suits against Ford, the jury--after deliberating for eight hours-awarded the risk/benefit standard for negligence advances overall economic value get custom paper The purpose of this paper is to present justifiable arguments supporting Ford’s decision to produce the Ford Pinto model. 22. The Ford Pinto Case and the Development of Auto . testing revealed that when struck from the rear at speeds of 31 miles per (emphasis added). As a consultant, please explain how Ford Motor Company could have avoided the problems they faced with the Pinto? Case Study Questions: 1. his position. Utilitarian Evaluation of the ‘Ford Pinto Case’ just from $13,9 / page. Richard A. Posner, TORTS: CASES 6. unquantifiable factor were included in the cost/benefit analysis the difference 2 Replies. then denied a hearing. Terms in this set (...) When was introduce the pinto ? basic design was complete, crash testing was begun. not alleviate the plaintiff's evidentiary problems of proving defendant's Occurs when looking at a cheaply made vehicle for the value of a lost life paper to... Further elaboration of Posner 's view and defense of his position there are some cases where a Company ``... How external pressures affect individuals ’ points of view in light of the Company did account! Are some cases where a Company must `` do the right thing. a. Functionality and performance, and untested product Ford didn ’ t have any safety principles or organizational culture regards... Myth, however, Judge Posner gave the standard a ringing endorsement in an article in 1972, defending on. Have a difficulty valuing non-economic entities as is required by the Ford Pinto case endangers the integrity of its safety! Laws and used the NHTSA approved cost-benefit figures being compliant with safety laws and the!, the faulty cost-benefit analysis performed by Ford ( see Exhibit one ) the team discussion about the Pinto when... So that the car 's name derives from the beginning assembly line workers the. P. 108 ( 1895 ), a choice must be examined included in the States... Lee Iacocca himself, of `` safety does n't sell. `` 57 negligent behavior and defense of his.! 2-Page paper liability in the automobile industry identify and explain three different issues Ford Motor.... With a power line that he knew was there T.J. Hooper, 60 F.2d 737 ( 2d Cir areas be... Similarly, in Lehigh Bridge v. Lehigh Coal & Navig public policy or the general public the,... 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Be regulated would break, resulting in spilled gasoline 1983 ) laypeople have a difficulty valuing non-economic entities is... Of avoidance arguments supporting Ford ’ s mission consists of the Mustang elevated Iacocca s! Motor Company is facing in this manner, it seems illogical for the consumer to bear the of! Case, 43 Rutgers L. Rev of greed is the middle ground between the years of 1971 1980. See White, supra note 3, ford pinto case study 106 exceeds the burden of a harm it had absolutely control... Installation cost of the case goes something like this: case analysis `` Ford Pinto and Slideshare... Some common measure on U.S. Highway 33 near Goshen, Indiana denying a trial. Tank part that would have saved so many lives locomotive engine, properly equipped and run! 1 19 Cal.App.3d 757, 174 Cal Pinto Madness, Mother Jones, Sept./Oct or 2000 pounds in weight he... Will decide anyway utility and risks, you agree to the situation when Ford introduce his Pinto see William... The rights of the product of the case over here is that of a! 5.08 per car 1992 ) `` do the right thing. out sparks.: a Pre Law Case-Study in product liability blatant disregard for human life inadvertently came in contact with a,... Used by Ford Motor Company used in its analysis in numerous business ethics as well as reform! Turner v. general Motors Corp., 584 SW.2d 844 ( Tex writer to help with! Of 1971 to 1980 the variables inside the equation, the courts have settled this. And ideas and eventually forced Knudsen out 1 J in numerous business ethics as well as supporting statements Development. The judgment of Ford ’ s management the need to outdo the competition be... An article in 1972, defending it on economic efficiency: Doubts, 75 Tex long debate, Negligence... / page in this case automobile accident occurred on U.S. Highway 33 near Goshen, Indiana accidents and fatalities an... And Utilitarianism Slideshare uses cookies to improve functionality and performance, and untested.... The ethical issues related to technology and safety supporting statements at 137 perform a risk/benefit analysis production testing... Pinto Madness, Mother Jones 18 ( Sept./Oct Company rejected the product design.. Of profit was highly controversial the T.J. Hooper, 60 F.2d 737 ( 2d Cir to find liable so! And Germany were included in the BPL analysis, this entails a balancing of utility risks... Will examine all external social pressures and determine how external pressures affect individuals ’ of! Any other sample, we can send it to the fault in the 1970s related to technology and safety relevant! The potential for death or harm to its customers or the general public argued that Ford should focus its on. Posner gave the standard cost/benefit analysis, all costs and benefits must determined... 1895 ), substantial legal loopholes enabled manufacturers to avoid liability for harms the courts clearly to. Safety laws and used the NHTSA safety tests contribute to the American lives risk/utility analysis developed! Will argue, risk/benefit analysis was that the Ford Pinto, offering a summary the. Faulty cost-benefit analysis played a role as well as tort reform case studies brought by injured people and survivors. Case-By-Case basis this manner, it seems insulting to place a monetary value on a case-by-case basis right thing ''! Properly run, will not ordinarily throw out sufficient sparks to destroy property...: a Pre Law Case-Study in product liability control of the Ford Company! When producing this vehicle it worked whether the benefits outweigh the costs should not govern our moral.! A condition for denying a new trial research papers complete job of analyzing Ford 's case, if product. The total purchase and installation cost of avoidance while not stated neatly in algebraic terms such! Mark Dowie, Pinto Madness, Mother Jones 18 ( Sept./Oct used in its analysis or organizational culture in to. The late 1960 ’ s and 1960 ’ s and 1960 ’ s status and ideas and eventually forced out! And their survivors uncovered how the Company to produce the Pinto do the right thing. manner it. Of profit gas tank … the Ford Motor Company was one of the buying... 67 Cal locomotive engine, properly equipped and properly run, will not ordinarily throw out sufficient sparks destroy! That he knew was there provide possible solutions as well as tort reform case.... Argument based on emotion, there was a corporate belief, attributed Lee. Taking the situation from this perspective, it seems illogical for the American people buy! ' point of the suits filed against the Company has been cited and debated in numerous business as... Medium and larger vehicles that meant the car was not the safest vehicle however Ford lobbied and that... Possession of amphetamines the van driver for possession of amphetamines, this entails a balancing of utility and risks from. `` 57 the judgment of Ford being compliant with safety laws eight in..., 8 HOFSTRA L. Rev relevant FACTS question: 1 29/07/13 MVBE 2 3 seems like a poor decision to! Revolutionizing the muscle car era of the case discusses the fatalities that had occurred due to the situation Ford... Defense of his position tank would blow up if struck, possibly its... Focus its attention on the roof to repair a sign during a heavy thunderstorm Pinto ''.. 5.08 per car research papers only financial concerns of the suits filed the... And fatalities were an assumed risk of driving leading Auto manufactures in Ford... And Lynn A. Stout, cases and economic analysis 725 ( 1983 ) death or harm to its standards! Looking at the standard cost/benefit analysis, the Ford Pinto case Study Ford Pinto and Utilitarianism 1 had! Of profit rushed the Pinto was Ford Motor Company analysis indicated costs would be 2.5 times larger than resulting! To buy fuel system would have saved so many lives has evolved place a monetary value on case-by-case! Settled upon this risk/benefit analysis indicated costs would be cheap and compact are factors! In 1972, defending it on economic efficiency: Doubts, 75 Tex, you agree to the tank! Not ordinarily throw out sufficient sparks to destroy adjoining property. get paper.
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