On what basis do the courts uphold punitive damages

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Assignment

The Topic: Product Defects

Research the Exploding Ford Pinto Cases and the GM faulty ignition switch cases. Support all answers with legal rationale. All nine items below should be addressed in your research.

1. Compare and contrast both cases. Present the facts in both cases.

2. What area(s) of law do both these cases potentially fall under? Why ... Explain

3. Was there a cover-up at Ford regarding the knowledge of the Exploding Pinto? Discuss

4. Was there a cover-up at GM regarding the Knowledge of the Ignition Switch problem? Discuss

5. Why did the jury award punitive damages against Ford? Would the awarding of punitive damages be appropriate for the GM ignition case?

6. On what basis do the courts uphold punitive damages?

7. Suppose the jury put Lee Iaccoca (CEO Ford at the time of the Ford Pinto Case), Robert Alexander (FORD) or Harold McDonald (FORD) or Fritz Henderson, Past GM CEO, or EdwardWhitacre, Past GM CEO or MaryBarranewly appointed CEO of GM in prison for their oversight and decisions regarding their product designs. What are the pros and cons of imposing criminal sentences as compared to issuing punitive damage rewards?

8. Ultimately, what happened to both of these iconic cases?

9. Do companies have an ethical responsibility to their customers and the citizens of this global society regarding product defects and release of information? Ultimately, companies are in business to make a profit. When companies such as Ford conduct a cost - benefit analysis and find it is less expensive to pay for injuries and loss of life versus fixing the defect and use this method as a business practice, will tougher laws bring about greater accountability?

You may find it helpful to review the following:

• GRIMSHAW v. FORD MOTOR CO. 119 Cal.App.3d 757
• Melton v. General Motors et.al.,
• There are several resources on the Internet highlighting these cases and the background information leading up to the cases.

Reference no: EM131544354

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