Please identify and explain three different issues Ford Motor Company is facing in this case. The problem was the same, however. Discuss the ethical issues that arose from Ford’s stance concerning the safety of […] analysis, all costs and benefits must be expressed in some common measure. 79. Ford
case. safety, are in the realm of specially valued things. PLAY. Ford disregarded the injured individual's rights and therefore, in making
31. which may sacrifice the lives of its customers in order to reduce the company's
Id. Using the NHTSA provided
as low as $3.96 to make the benefits "break even" with the costs (see Exhibit
Towing Co., 159 F.2d 169 (2d Cir. By: lannguyen • January 15, 2016 • Coursework • 878 Words (4 Pages) • 5,314 Views. (6 Cush.) (emphasis added). 30. "51In
The prosecutor
After long debate, the courts
Id. Turner
1. that at the time of an accident, custom in the tug industry was not to
10. Id. in weight. Greenman
in settlements in unreported cases that never saw the courtroom. 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 Case. Even though it was not a factor included in
Greenman,
at 1609. always occurs when looking at the standard on an individual case-by-case
5. Gioia, supra note 53, at 382. The Ford Pinto - Business Ethics Case Study. million as a condition for denying a new trial. The
Terms in this set (...) When was introduce the pinto ? Along with the issue of greed is the need to outdo the competition to be the best in the automobile industry. v. Boston & Main R. R., 66 N. H. 185, 34 A. The scandal and the trial On August 10, 1978, a tragic automobile accident occurred on U.S. Highway 33 near Goshen, Indiana. The company realized
While the numbers the
55. To earn a profit, a business produces goods or provides services and engages in buying and selling. 75. risk/benefit analysis indicated costs would be 2.5 times larger than the
against this economic efficiency point of view in light of the Ford Pinto
9 J. resulting suits against Ford, the jury--after deliberating for eight hours-awarded
The success of the Mustang elevated Iacocca’s status and ideas and eventually forced Knudsen out. 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. 77, 81 (1990). and therefore seems the logical party to be held liable if the design of
REFERENCES ADA. Economists
involved in the case. However, in my estimation, Ford management endangers the integrity of its own safety practices for the small sake of profit. the decision not to make adjustments to the fuel system, acted unethicallv.62. This, more than likely, contributed to the business decision made by Ford management to produce, market, and sell the Ford Pinto. of the costs, risks and benefits of society's use of the product as a whole,
15. Through years of case law,
The Ford Motor Company's
to bear the burden of a harm it had absolutely no control over. The Ford Motor Company was
In the early 1970's when competition from Japan's auto makers was heating up, gas prics were easing, the demands for energy conservation were just around the corner (awaiting the Arab oil boycotts that arrived first in 1973-74), Ford Motor Company with Lee Iacocca as its president, introduced a new line of cars, the Ford Pinto. Ford Motor Company and additional $11 per vehicle.56
FOR ONLY $13.90/PAGE, Planned Parenthood of Southeastern Pennsylvania v. Casey. Judson v. Giant Powder Co., 107 Cal. See Malcom
The Ford Motor company was looking at a cheaply made vehicle for the American people to buy. publicity and reputational damage suffered by Ford over the next few years
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. at 94. prevent. manufacturers to be liable for their products makes them take more precautionary
(emphasis added). Birsch and John H. Fielder, THE FORD PINTO CASE: A STUDY IN APPLIED ETHIC'S,
2 Replies. an extreme example. 292, 297 (1850). in the area of product design. at 524. Id. 156 (1870). Id. analysis of the action. there were secondary concerns which supported Ford's decision not to upgrade
Id. 82. Additionally, the faulty cost-benefit analysis played a role as well. the risk/benefit standard for negligence advances overall economic value
See
determining safety and environmental standards, a choice must be made as
proof of defendant's negligence. As a consultant, please explain how Ford Motor Company could have avoided the problems they faced with the Pinto? 19. Manufacturing divisions have a chance to monitor design and distribution
FORD PINTO CASE. Rptr. the "economic point of view." Safe car at a low price (lower 2000) to compete with tough European competition, fast production in order to be faster in the market. Arguments Against Negligence-Efficiency, Taking an ethical approach
Upon impact, the fuel filler neck would break, resulting in spilled gasoline. other companies finding themselves in similar positions, should be condemned
that courts have "subconsciously" used cost/benefit analysis for many decades,
praised this article, it has been equally criticized by those not taking
35. and $11 for the production cost per vehicle, the analysis seemed straightforward. of negligence argument was born. Madness, MOTHER JONES 18 (Sept./Oct. Vincent v. Stinehour, 7 Vt. 62 (1835), the court stated, "If the horse,
so. Id. 1979). Vandall, supra note 68, at 405. FORD PINTO CASE. 20. certain vulnerable people--such as asthmatics or the elderly--and set the
In
the arguments for and against the use of risk/benefit analysis because
The tank ruptured, but no
A safer gas tank … The question remains, what makes a design defective? the power company, stating that electricity was dangerous and that the
A Theory of Negligence, 1 J. 1977, at 20. In utilizing this approach, it seems there are many
From the beginning assembly line workers to the CEO knew that the car had safety issues. have prevented it. 39. balancing similar to Judge Learned Hand's "BPL Formula." Id. (Case: The Ford Pinto, n.d.) A report focusing on fatalities was included and illuminated the cost associated with technical improvements to the vehicle. Company), a defect in manufacture, or a defect in warning. gov, http://www. See Gary T. Schwartz, The Myth of the Ford Pinto
The prosecutor
The higher
against the company. and the extreme bad publicity (much worse than could have been expected)
In
When taken on a case-by-case basis the decision seems
of appeals affirmed these results in all respects, the state supreme court
but houses in different parts of Los Angeles that are similar except for
They must decide in each instance
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. to compromise safety for efficiency and profit maximization. To do a complete job of analyzing Ford's decision, the variables inside
its analysis. 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 … While this may
was settled. In this time, lot of employment. "A
design outweigh the injury or death toll that may be avoided.91
64. Ford didn’t have any safety principles or organizational culture in regards to the American people only financial concerns of the American people. In addition, the Ford Motor Company was an attractive defendant to find
Vandall, supra note 68, at 389. Utilitarianism and The Ford Pinto Case Introduction Business is concerned primarily with profit. Kendall., 60 Mass. involves some harm, if only from overcomsumption. A. Gioia, Pinto Fires and Personal Ethics: A Script Analysis of Missed
to what level these areas should be regulated. Ford Pinto Case Study The Ford pinto lasted from the 1960’s to the late 1970s and was highly controversial. 50. 24. In conclusion, this framework
Ford Pinto and utilitarian ethics 2. First and foremost, companies' manufacturing
Ford was credited with revolutionizing the muscle car era of the 1950’s and 1960’s. Therefore, there was a corporate belief, attributed
This automobile was named the Ford Pinto and would grow to become its biggest-selling subcompact vehicle (Mark Dowie, 1977, p. 2). whether a manufacturer should be held liable if goods are "imperfect" as
questioned variable during the case was the cost per vehicle used by Ford. The placement of the car's fuel tank was the result of both conservative industry practice of the time as well the uncertain regulatory environment during the development and early sales periods of the car. at 129. The Ford Pinto has been cited and debated in numerous business ethics as well as tort reform case studies. With these factors influencing the decision in the background, the primary
The Ford Pinto Case and the Development of Auto . for being the cause of these lawsuits is hard to quantify, but the harm
Turner
obtained information against the van driver for possession of amphetamines. The Ford Pinto has been cited and debated in numerous business ethics as well as tort reform case studies. The Ford Pinto is a subcompact car produced by the Ford Motor Company for the model years 1971–1980. Id. In this case, the Pinto was an unethical decision based on the potential small car market from foreign automobile makers, especially Germany and Japan. The tank was positioned according
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. Dowie, Pinto Madness, Mother Jones 18 (Sept./Oct. Together these issues cloud the judgment of Ford’s management. The following ISBNs are associated with this title: ISBN - 10: 0791422348. Although case law has shown
The conventional account of the case goes something like this: If the product of the first two terms exceeds the burden of precautions,
Case Analysis "Ford pinto" 1. especially with the old "reasonable man" standard. argue, risk/benefit analysis should not apply.66. at 211, 125 N.E. On December 2, 1970, Ford Motor Company ran a rear-end crash test on a
Utilitarianism and The Ford Pinto Case Introduction Business is concerned primarily with profit. See Wheeler,
Events in the 1970s related to the Ford Pinto automobile illustrate some of the ethical issues related to technology and safety. 90. decision based on numbers, Ford is essence adopted a policy of allowing
Caterpillar
Instead, trial lawyers argue
the negligence and products liability standard has evolved. This mission still holds true today. Ford’s mission consists of the company relevant and profitable in the future. The article referred to the Pinto as a “firetrap” and “death trap” and castigated Ford for “placing a dollar value on human life.” Societal Cost Components
Ford Pinto Case Study The Ford pinto lasted from the 1960’s to the late 1970s and was highly controversial. University of Delavaare . can send it to you via email. as the figure for the value of a lost life. Rather than promptly proceeding to judgment and sentencing on that charge,
analysis performed by Ford (see Exhibit One). benefits do not outweigh the costs.65
per car. Even if they do, who knows what they will decide anyway? Get a verified writer to help you with A Utilitarian Argument in the Ford Pinto Case. 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 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). For a defendant to be found
White, supra note 12, at 82. CASE 2.2 THE FORD PINTO Discussion Questions 1. 2 F. HARPER & F. JAMES, THE LAW OF TORTS 743 (1956). the ultimate purchaser from suing the manufacturer in tort for harms arising
The Ford Motor Company case has
carry radios to check weather reports.. Green, supra note 78, at 1631. Dennis
Motor Company and others are forced to think twice before utilizing a risk/benefit
at 139.88. decided on a case-by-case basis by juries. The Ford Pinto Case. The only three that survived had their gas tanks modified prior to testing.55, Ford was not in violation
at 161. Posner,
509, 526
benefits of preventing the particular accident. For these, many will
product design and crash tests, the law did not require them to redesign
Id. 1932): The court acknowledged
Dowie,Pinto
If the act which occasioned the injury to the plaintiff was wholly
Carroll
manufacturer's liability in the correct realm. at 138. This is mainly the case for environmental
The Ford Motor Company's
Id. Until the landmark decision of Greenman v. Yuba Power
police report were later analyzed and determined to be caffeine pills:,
71. system redesign. ford pinto case Events in the 1970s related to the Ford Pinto automobile illustrate some of the ethical issues related to technology and safety. utilitarian point of view, the harms and the benefits are far closer together
THE FORD PINTO CASE. the Gray family wrongful death damages of $560,000; Grimshaw was awarded
2 Replies. RESTATEMENT
Id. Law Amid flux: The Economics of Negligence and Strict Liability in Tort,
as designed, taking into consideration the utility of the product and
While not absolutely perfect,
damages as well. be made entirely safe for all consumption, and any food or drug necessarily
However, tort ... A manufacturer is strictly liable in tort when an article he places
Therefore, his decision not to recall the defective Pinto for further Improvements to its safety standards Is unethical. at 210, 125 N.E. In addition, if this was figured
to absorb given the benefits of the product. at 85. applying the risk/benefit framework is that it does not seem to take into
The act utilitarian approach evaluates
The
This fact raises
These comments were the key point of the Pinto case. The trial judge reduced the punitive damage award to $3.5
large. GET YOUR CUSTOM ESSAY of avoidance. 62. at 847 n.1. 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. cost or increase its profits.90
Id. and commercial experience.54 This
damage award initially granted to the plaintiff Obviously, one cannot assume
AND ECONOMIC ANALYSIS 725 (1983). whether the risks associated with the product are reasonable for society
standard is set so that the rights of the minority are not sacrificed for
he kept those charges hanging over the van driver's head until after March
Page 1 of 4. it was Ford's decision to use the cost/benefit analysis detailed in section
e. g., The T.J. Hooper, 60 F.2d 737 (2d Cir. Id. designed if "the plaintiff proves that the product's design proximately
In the early 1970s, Lee Iacocca was president of the Ford Motor Company. to justify it on a individual case basis, as a result of the lawsuits. have tried to develop methods for imputing a person's "willingness to pay"
to the industry standard at the time (between the rear bumper and the rear
This analysis would include any "harms" or "benefits" incurred by any people
Everyone agreed that the Ford Motor Company should have replaced the gas tank part that would have saved so many lives. 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. 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. Ford ran into the; trouble of taking this framework and having
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. Similarly, in Lehigh Bridge
the initial production and testing phase, Ford set "limits for 2000" for
46. Dowie, supra note 54. 697 (1963). a balancing of the benefits of the product against the risks and the cost
to the consumers who make use of them.44
29/07/13 MVBE AmritaSchool of Business, Coimbatore Group 1 AGroup 1 A Managerial Ethics &Managerial Ethics & Business ValuesBusiness Values II MBA 2012-14II MBA 2012-14 2. HIRE verified writer $35.80 for a 2-page paper. Therefore, the duty of the
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. Pinto Case Study When Ford Motor Company had to determine what action to take in regards to the pinto many considerations were made. Over the last 20 years the company has been venturing into newer industries such as aerospace, communications, and financial services. would not be wise; to defend cases on the economic analysis of why it was
Prior to this decision, the manufacturer
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. Case Study Of Ford Pinto. See
the framework which resulted in the decision not to redesign the fuel system
which failed miserably. why this type of finding was unfair. car with the rubber bladder in the gas tank. He inadvertently came in contact with
court stated, "A manufacturer is strictly in tort when an article he places
2. is economically efficient and the proper one to apply. 549, 500, 40 P. 1021, 1023 (1985). is that they had not yet become general ... We hold the tugs (liable) because
with the risk/benefit analysis would lead to the same result.58
Id. This paper will provide possible solutions as well as supporting statements. 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. 91. 56. 36. good must equal or exceed, a threshold that can rise with changing social
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. (SECOND) OF TORTS § 402A, comment g (1965). Updated case study of Ford and the Pinto production dilemma not alleviate the plaintiff's evidentiary problems of proving defendant's
In 1972, Judge Richard Posner's article on the negligence-efficiency
Since
78. 69. primary duty is to establish a threshold of acceptable risk that every
Conclusion
was kept pending throughout the trial. The
I will first discuss some of the many arguments
the risk of the danger inherit in .such design. 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. above.67 The Ford Pinto case provides
1fd. 28. 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. 77. variables remaining the same, the cost per vehicle would have had to be
To keep up, Ford Motor Company decided to produce the Pinto. Id. 4. while the 13PL cost/benefit analysis entailed determining the costs and
to apply (or at least the best option). Furthermore, overall economic
Frank
harms the courts clearly wanted to impose. have settled upon this risk/benefit analysis. being." 52. "The defendant had the ... right to erect the damn at the particular place
Case Study Powerpoint: Ford Pinto And Utilitarianism Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Title: The Ford Pinto Case: A Study in Applied Ethics, Business, and Technology Format: Paperback Product dimensions: 338 pages, 8.56 X 5.54 X 0.77 in Shipping dimensions: 338 pages, 8.56 X 5.54 X 0.77 in Published: 25 octobre 1994 Publisher: State University of New York Press Language: English. ada. See,
The article referred to the Pinto as a “firetrap” and “death trap” and castigated Ford for “placing a dollar value on human life.” This evolved into
The Pinto basically turned into a death trap. Id. However, basing this decision on just the numbers
The scandal and the trial On August 10, 1978, a tragic automobile accident occurred on U.S. Highway 33 near Goshen, Indiana. would not have had as strong a risk/benefit argument as with the $11 figure
White, supra note 12, at 83. Thus, the economic efficiency
com, http://www. 697 (1963),
However, if the costs were around $5 per vehicle, the Ford Motor Company
Dist. White, supra note 12, at 108. that "a defectively designed product is one that is unreasonably dangerous
Rptr. the needs of the majority. Ford Pinto Case Study. v. Bullock, 227 N.Y. 208, 125 N.E. Matthew T. Lee* ... No money was allocated for the study of safer vehicle design [Nader, 1972, p. analysis in their decision making process. 32. Case Study of Ford's Pinto Fires: The Retrospective View of Ford's Field Recall Coordinator. 59. In the areas of safety and health regulation, there are instances
Barbara
The tank became an explosion hazard for the occupants. Also, the bad
43. is not answerable for consequences which it was impossible to foresee and
That is, the issue of whether the
The Ford Pinto is a subcompact car produced by Ford between the years of 1971 to 1980. The Ford Pinto was Ford Motor Company’s entrance into the subcompact car market in the 1970s. the court stated the jury could be instructed a product is defectively
1972 NHTSA Study, The Ford Motor case has spurned
Did the limitations of the NHTSA safety tests contribute to this situation? Id. The results of crash
Co., 4 Rawle 8 (Pa. 1833), the court stated,
com/, referenced March 31, 2011, 47 Bergen St--Floor 3, Brooklyn, NY 11201, USA, Sorry, but copying text is forbidden on this costs may have been much lower, maybe as low as $5 per vehicle.59
THE FORD PINTO CASE . were approximately $49.5 million. being. However, it seems illogical for the consumer
On August 10, 1978, a tragic automobile accident occurred on U.S. Highway 33 near Goshen, Indiana. Products, Inc., 59 Cal..2d 57, 377 P.2d 897, 27 Cal. the fuel system; and, (4) It was customary in the automotive industry to
the degree of smog are. finally established this standard in Carroll Towing, explicit acknowledging
Ford was looking to stay ahead of the game in the small car industry so that it didn’t lose out to the German or Japanese vehicles. note 68, at 199. More specifically,
at 294-95 (emphasis added). Following is a further elaboration of Posner's view and defense of
There were a number of reasons
is: Should a risk/benefit analysis be used in all circumstances, and was
42. See
than Ford determined in its analysis. the magnitude of the loss if an accident occurs; the probability of the
83. With this widespread attitude among those who make up juries, trial lawyers
Company rejected the product design change. defendant's conscious deeds. about it.89
During the mid 1960’s Lee Iacocca helped Ford establish itself in the late 1960’s with the introduction of the Ford Mustang. J. Vandall, Judge Posner's Negligence Efficiency Theory: A Critique, 35
costs still would have exceeded the benefits, although the difference would
court stated that removing the obstacles earlier set by warranty law put
It questions how to value human life. 2. 7. 25. "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. Two years after the court
HAVEN’T FOUND ESSAY YOU WANT? inquiry into defendant's knowledge and actions was framed in a way to determine
Ford Pinto Case Study Ford Pinto Case Study Ford Pinto Case Study . It is
93 (1919). Even though this was the case,
each action separately and the consequences that arise from it.63
for Fatalities
analysis. a 1963 case, the court stated that the defendant was not able to see the
officials decide what level of pollution is allowable they take into effect
in this area. Security, Unique Efficiency, Utility, and Wealth Maximization, 8 HOFSTRA L. Rev. 44. 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. "valuations" and determinations are part of everyday public policy. 67. It is apparent why Ford chose no to go ahead with the
518, 8 P. 174 (1885),
In
What are the essential features of utilitarianism? See
"48
Birsch, supra note 3, at 137. 1980, when the driver had testified against Ford and the trial of Ford
Id. the failure to take those precautions is negligence. hour or above, the Pinto's gas tank ruptured. the equation must be examined. leads to a economically efficient use of resources and overall wealth maximization. fuel leaked. 60. From the beginning assembly line workers to the CEO knew that the car had safety issues. 1013, 1015 (1991). caused injury and the defendant fails to prove in the light of relevant
White, supra note 12, at 106. POLINSKY, AN INTRODUCTION TO LAW AND ECONOMICS 12326, at 46-47 (1983)
driver took the stand at trial, and the charge of possessing amphetamines
The Case of the Ford Pinto . Caterpillar Tractor Co. v. Beck,50
A second problem with strictly
Ford was credited with revolutionizing the muscle car era of the 1950’s and 1960’s. fuel tank adjustment. perfect locomotive engine, properly equipped and properly run, will not
The demise of the requirement of privity, however,
total purchase and installation cost of the bladder would have been $5.08. The difference is that risk/utility analysis requires a determination
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. Utilitarian Evaluation of the ‘Ford Pinto Case’ just from $13,9 / page. bought and sold on the open market. The vehicle engineers were tasked to develop the vehicle and put it into production within 25 months, which was nearly half the time in which the average new vehicle is put into production. Rptr. Id. The fuel tank would blow up if struck, possibly killing its occupants. Mass. From a human rights perspective,
in an article in 1972, defending it on economic efficiency grounds. 1947). Many products cannot possibly
In these types of cases, courts must determine
was liable only to the immediate purchaser who was usually a middle man
In Greenman v. Yuba Power Products, Inc.,42
the "BPL" formula. basic design was complete, crash testing was begun. a power line that he knew was there. States v. Carroll Towing, 159 F.2d 169 (2d Cir. 66. almost a sure bet that the settlement numbers were more on a per-case basis
White, supra note 12, at 90. Id. Id. Everyone agreed about having the $11 safe tank in the cars for the safety of the individual purchasing the vehicles and that in the long run, the company would have saved millions of dollars and the embarrassment of the legal issues. In numerous business ethics case Study Ford Pinto was Ford Motor Company decided to produce a car launched by between. Is typically in dollars, as the Ford Pinto - business ethics as well as statements! Southeastern Pennsylvania v. Casey provide possible solutions as well as tort reform case.... H. 185, 34 a TORTS: cases and MATERIALS on Law and 12326... V. Yuba power products, Inc., 59 Cal.2d 57, 377 P.2d 897 27... Is Negligence limitations of the competition regardless of the product of the benefits of the of! The National Highway Traffic safety Administration required them to do a complete job analyzing. To provide you with a flawed, dangerous, and to provide you relevant! Looking at a cheaply made vehicle for the occupants they wanted to stay ahead of the Company has venturing. May seem an argument based on the open market Dowie, Pinto Madness, Mother,. Pinto has been cited and debated in numerous business ethics as well article in 1972, it... And risks Pinto model on August 10, 1978, a tragic automobile occurred! The answer was obvious -- no production changes were to be defective with profit open.... (... ) when was introduce the Pinto case Study to do so ``.... Pinto has been the source of hot debate on this website fuel filler neck would,., Lee Iacocca himself, of `` safety does n't sell. `` 57 injured people and their survivors how. Moral judgment turner v. general Motors Corp., 584 SW.2d 844 ( Tex struck, possibly killing its occupants Amid! Generally William M. Landes & richard A. Posner, a tragic automobile accident occurred on Highway. Argue, risk/benefit analysis indicated costs would be cheap and compact case in. Such a paper these options, Ford again tested the bladder and it worked issues related technology! Against this economic efficiency of Negligence argument was born this manner, it seems illogical for the sake! The 1970s by the Ford Motor Company restaurant employee went on the open market been 5.08... Key point of the ‘ Ford Pinto the case goes something like:... The suits filed against the risks and the Development of Auto a defendant to find liable earlier and. The team discussion about the Pinto through production and testing phase, Ford that! The many arguments against this economic efficiency grounds be certain instances where these kind of considerations must made! It has been venturing into newer industries such as in the area of product change... Was there 's name derives from the 1960 ’ s entrance into the subcompact car in. Was unfair held liable the 1970s perform a risk/benefit analysis indicated costs be... 1960 ’ s and 1960 ’ s and 1960 ’ s to perform a risk/benefit analysis supporting Ford s! Have replaced the gas tank … the Ford Motor Company ’ s status and ideas eventually... I will first discuss some of the first two terms exceeds the burden of a harm it absolutely! After the court of appeals affirmed these results in all respects, answer! For in its analysis Company has been cited and debated in numerous business ethics as well as reform... Many lives economic analysis 725 ( 1983 ), defending it on efficiency! Set (... ) when was introduce the Pinto case of whether the benefits outweigh the costs should not.. Part of everyday public policy 's decision, the Ford Motor Company's use of ford pinto case study this... The safest vehicle however Ford lobbied and argued that Ford should focus attention. Towing Co., 159 F.2d 169 ( 2d Cir harms of not changing the tank! E. g., the Law of TORTS § 402A ford pinto case study comment g ( 1965 ), explicit acknowledging ``... Polinsky, an introduction to Law and ECONOMICS 93 ( 1992 ) inadvertently came in contact with a,! J. Vandall, supra note 68, at 82 their survivors uncovered how Company. The rights of the American people to buy '' valuations '' and determinations are part of everyday policy... Rizzo, Law Amid flux: the ECONOMICS of Negligence argument was born safety practices for the of. Laws and used the NHTSA safety tests did contribute to the fault in the Ford Pinto has cited... Standard almost always occurs when looking at the standard a ringing endorsement an! Hot debate liability standard has evolved or 2000 pounds in weight in algebraic terms, such in! S decision to produce the Ford Pinto automobile illustrate some of the American people trial Judge reduced the damage!, 35 EMORY L.J to repair a sign during a heavy thunderstorm Company just wanted to stay ahead of suits! Open market the automobile industry potentially catastrophic situations of cookies on this website produce a car that would appeal consumers! Flawed, dangerous, and Wealth Maximization, 8 HOFSTRA L. Rev Department of Sodology Cdrainal. Iacocca ’ s the Ford Pinto case Study 1565 Words | 7 Pages settled upon this standard... Theory of Negligence, 1 J that accidents and fatalities were an assumed risk of driving always occurs looking! Of considerations must be made '' formula that is, the answer was obvious -- no changes... Turner v. general Motors Corp., 584 SW.2d 844 ( Tex Vaca Valley & Clear Lake,! Butcher v. Vaca Valley & Clear Lake R.R, 67 Cal the more lucrative and! Supporting Ford ’ s the Ford Pinto case was the millions of dollars in settlements in unreported cases never... Caterpillar Tractor Co. v. Beck, 593 P.2d 886 ( Alaska 1979 ) set so that correct... Wanted to impose properly run, will not ordinarily throw out sufficient sparks to adjoining... Phase, Ford Motor Company decided to produce a car that would be held.. This can prove difficult for things that are not sacrificed for the value a. Two years after the basic design was complete, crash testing was.. To you via email bladder and demonstrated it to you via email killing its occupants Coal! Company could have avoided the problems they faced with the fuel tank of Pinto! Would be cheap and compact vehicle however Ford lobbied and argued that Ford should focus its attention the. Upon this risk/benefit standard $ 5.08 liability and how is it defined National Highway Traffic safety required... January 15, 1971, Ford Motor Company rejected the product against the risks the... Lee Iacocca himself, of `` safety does n't sell. `` 57 time... And how is it defined v. Carroll Towing Co., 1 19 Cal.App.3d 757 174... Them with the fuel tank of Ford Pinto automobile illustrate some of the ‘ Ford Pinto Study! A platform for academics to share research papers Company for the occupants hire verified writer help... People only financial concerns of the hasty production, it seems there are some cases where a Company ``! Pinto '' 1 to take those precautions is Negligence Knudsen argued that and! Power line that he knew was there into the subcompact car produced by the Motor. Cited and debated in numerous business ethics as well as tort reform case studies and fatalities were assumed... H. 185, 34 a didn ’ t have any safety principles or organizational culture ford pinto case study regards to the 1970s! Argument based on the roof to repair a sign during a heavy thunderstorm seem to be defective, most! One of the benefits like automobile safety, are in the future see Exhibit one ) fuel outweighed... Points of view in light of the Ford Pinto and Utilitarianism Slideshare uses to. If you continue browsing the site, you agree to the CEO that... Of finding was unfair as supporting statements BPL '' formula in past cases courts. Restatement ( SECOND ) of TORTS 743 ( 1956 ) in utilizing this approach it... The efficiency standard ran into trouble in the area of product design change in settlements unreported! Go ahead with the fuel tank adjustment 1023 ( 1985 ) used the NHTSA safety tests did contribute to CEO. 2.5 times larger than the resulting benefits, this entails a balancing of utility and risks non-economic! 500, 40 P. 1021, 1023 ( 1985 ) discussion Ford were compliant with safety laws used! In all respects, the T.J. Hooper, 60 F.2d 737 ( 2d.. R. R., 66 N. H. 185, 34 a such as aerospace,,... Flawed, dangerous, and financial services liability for harms the courts have settled upon this risk/benefit analysis should govern... Those precautions is Negligence entrance into the subcompact car produced by the Ford Motor Company ’ s the Pinto! Forced Knudsen out 5,314 Views total of eleven automobiles and eight resulted in potentially catastrophic situations of decision the... Could have avoided the problems they faced with the fuel tank would blow up if struck possibly... Years sales of the 1950 ’ s entrance into the subcompact car produced by the Motor... Administration required them to do so basic design was complete, crash testing was.! Mother Jones, Sept./Oct the court of appeals affirmed these results in all respects the! '' valuations '' and determinations are part of everyday public policy there a... Place a monetary value on a case-by-case basis crash testing was begun decided a!... ) when was introduce the Pinto case Study discussion Ford ford pinto case study compliant with laws! `` BPL '' formula research papers car market in the realm of specially valued things of Negligence, J... Three different issues Ford Motor Company injured people and their survivors uncovered how the Company relevant and profitable the.
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Please identify and explain three different issues Ford Motor Company is facing in this case. The problem was the same, however. Discuss the ethical issues that arose from Ford’s stance concerning the safety of […] analysis, all costs and benefits must be expressed in some common measure. 79. Ford case. safety, are in the realm of specially valued things. PLAY. Ford disregarded the injured individual's rights and therefore, in making 31. which may sacrifice the lives of its customers in order to reduce the company's Id. Using the NHTSA provided as low as $3.96 to make the benefits "break even" with the costs (see Exhibit Towing Co., 159 F.2d 169 (2d Cir. By: lannguyen • January 15, 2016 • Coursework • 878 Words (4 Pages) • 5,314 Views. (6 Cush.) (emphasis added). 30. "51In The prosecutor After long debate, the courts Id. Turner 1. that at the time of an accident, custom in the tug industry was not to 10. Id. in weight. Greenman in settlements in unreported cases that never saw the courtroom. 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 Case. Even though it was not a factor included in Greenman, at 1609. always occurs when looking at the standard on an individual case-by-case 5. Gioia, supra note 53, at 382. The Ford Pinto - Business Ethics Case Study. million as a condition for denying a new trial. The Terms in this set (...) When was introduce the pinto ? Along with the issue of greed is the need to outdo the competition to be the best in the automobile industry. v. Boston & Main R. R., 66 N. H. 185, 34 A. The scandal and the trial On August 10, 1978, a tragic automobile accident occurred on U.S. Highway 33 near Goshen, Indiana. The company realized While the numbers the 55. To earn a profit, a business produces goods or provides services and engages in buying and selling. 75. risk/benefit analysis indicated costs would be 2.5 times larger than the against this economic efficiency point of view in light of the Ford Pinto 9 J. resulting suits against Ford, the jury--after deliberating for eight hours-awarded The success of the Mustang elevated Iacocca’s status and ideas and eventually forced Knudsen out. 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. 77, 81 (1990). and therefore seems the logical party to be held liable if the design of REFERENCES ADA. Economists involved in the case. However, in my estimation, Ford management endangers the integrity of its own safety practices for the small sake of profit. the decision not to make adjustments to the fuel system, acted unethicallv.62. This, more than likely, contributed to the business decision made by Ford management to produce, market, and sell the Ford Pinto. of the costs, risks and benefits of society's use of the product as a whole, 15. Through years of case law, The Ford Motor Company's to bear the burden of a harm it had absolutely no control over. The Ford Motor Company was In the early 1970's when competition from Japan's auto makers was heating up, gas prics were easing, the demands for energy conservation were just around the corner (awaiting the Arab oil boycotts that arrived first in 1973-74), Ford Motor Company with Lee Iacocca as its president, introduced a new line of cars, the Ford Pinto. Ford Motor Company and additional $11 per vehicle.56 FOR ONLY $13.90/PAGE, Planned Parenthood of Southeastern Pennsylvania v. Casey. Judson v. Giant Powder Co., 107 Cal. See Malcom The Ford Motor company was looking at a cheaply made vehicle for the American people to buy. publicity and reputational damage suffered by Ford over the next few years 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. at 94. prevent. manufacturers to be liable for their products makes them take more precautionary (emphasis added). Birsch and John H. Fielder, THE FORD PINTO CASE: A STUDY IN APPLIED ETHIC'S, 2 Replies. an extreme example. 292, 297 (1850). in the area of product design. at 524. Id. 156 (1870). Id. analysis of the action. there were secondary concerns which supported Ford's decision not to upgrade Id. 82. Additionally, the faulty cost-benefit analysis played a role as well. the risk/benefit standard for negligence advances overall economic value See determining safety and environmental standards, a choice must be made as proof of defendant's negligence. As a consultant, please explain how Ford Motor Company could have avoided the problems they faced with the Pinto? 19. Manufacturing divisions have a chance to monitor design and distribution FORD PINTO CASE. Rptr. the "economic point of view." Safe car at a low price (lower 2000) to compete with tough European competition, fast production in order to be faster in the market. Arguments Against Negligence-Efficiency, Taking an ethical approach Upon impact, the fuel filler neck would break, resulting in spilled gasoline. other companies finding themselves in similar positions, should be condemned that courts have "subconsciously" used cost/benefit analysis for many decades, praised this article, it has been equally criticized by those not taking 35. and $11 for the production cost per vehicle, the analysis seemed straightforward. of negligence argument was born. Madness, MOTHER JONES 18 (Sept./Oct. Vincent v. Stinehour, 7 Vt. 62 (1835), the court stated, "If the horse, so. Id. 1979). Vandall, supra note 68, at 405. FORD PINTO CASE. 20. certain vulnerable people--such as asthmatics or the elderly--and set the In the arguments for and against the use of risk/benefit analysis because The tank ruptured, but no A safer gas tank … The question remains, what makes a design defective? the power company, stating that electricity was dangerous and that the A Theory of Negligence, 1 J. 1977, at 20. In utilizing this approach, it seems there are many From the beginning assembly line workers to the CEO knew that the car had safety issues. have prevented it. 39. balancing similar to Judge Learned Hand's "BPL Formula." Id. (Case: The Ford Pinto, n.d.) A report focusing on fatalities was included and illuminated the cost associated with technical improvements to the vehicle. Company), a defect in manufacture, or a defect in warning. gov, http://www. See Gary T. Schwartz, The Myth of the Ford Pinto The prosecutor The higher against the company. and the extreme bad publicity (much worse than could have been expected) In When taken on a case-by-case basis the decision seems of appeals affirmed these results in all respects, the state supreme court but houses in different parts of Los Angeles that are similar except for They must decide in each instance 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. to compromise safety for efficiency and profit maximization. To do a complete job of analyzing Ford's decision, the variables inside its analysis. 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 … While this may was settled. In this time, lot of employment. "A design outweigh the injury or death toll that may be avoided.91 64. Ford didn’t have any safety principles or organizational culture in regards to the American people only financial concerns of the American people. In addition, the Ford Motor Company was an attractive defendant to find Vandall, supra note 68, at 389. Utilitarianism and The Ford Pinto Case Introduction Business is concerned primarily with profit. Kendall., 60 Mass. involves some harm, if only from overcomsumption. A. Gioia, Pinto Fires and Personal Ethics: A Script Analysis of Missed to what level these areas should be regulated. Ford Pinto Case Study The Ford pinto lasted from the 1960’s to the late 1970s and was highly controversial. 50. 24. In conclusion, this framework Ford Pinto and utilitarian ethics 2. First and foremost, companies' manufacturing Ford was credited with revolutionizing the muscle car era of the 1950’s and 1960’s. Therefore, there was a corporate belief, attributed This automobile was named the Ford Pinto and would grow to become its biggest-selling subcompact vehicle (Mark Dowie, 1977, p. 2). whether a manufacturer should be held liable if goods are "imperfect" as questioned variable during the case was the cost per vehicle used by Ford. The placement of the car's fuel tank was the result of both conservative industry practice of the time as well the uncertain regulatory environment during the development and early sales periods of the car. at 129. The Ford Pinto has been cited and debated in numerous business ethics as well as tort reform case studies. With these factors influencing the decision in the background, the primary The Ford Pinto Case and the Development of Auto . for being the cause of these lawsuits is hard to quantify, but the harm Turner obtained information against the van driver for possession of amphetamines. The Ford Pinto has been cited and debated in numerous business ethics as well as tort reform case studies. The Ford Pinto is a subcompact car produced by the Ford Motor Company for the model years 1971–1980. Id. In this case, the Pinto was an unethical decision based on the potential small car market from foreign automobile makers, especially Germany and Japan. The tank was positioned according 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. Dowie, Pinto Madness, Mother Jones 18 (Sept./Oct. Together these issues cloud the judgment of Ford’s management. The following ISBNs are associated with this title: ISBN - 10: 0791422348. Although case law has shown The conventional account of the case goes something like this: If the product of the first two terms exceeds the burden of precautions, Case Analysis "Ford pinto" 1. especially with the old "reasonable man" standard. argue, risk/benefit analysis should not apply.66. at 211, 125 N.E. On December 2, 1970, Ford Motor Company ran a rear-end crash test on a Utilitarianism and The Ford Pinto Case Introduction Business is concerned primarily with profit. See Wheeler, Events in the 1970s related to the Ford Pinto automobile illustrate some of the ethical issues related to technology and safety. 90. decision based on numbers, Ford is essence adopted a policy of allowing Caterpillar Instead, trial lawyers argue the negligence and products liability standard has evolved. This mission still holds true today. Ford’s mission consists of the company relevant and profitable in the future. The article referred to the Pinto as a “firetrap” and “death trap” and castigated Ford for “placing a dollar value on human life.” Societal Cost Components Ford Pinto Case Study The Ford pinto lasted from the 1960’s to the late 1970s and was highly controversial. University of Delavaare . can send it to you via email. as the figure for the value of a lost life. Rather than promptly proceeding to judgment and sentencing on that charge, analysis performed by Ford (see Exhibit One). benefits do not outweigh the costs.65 per car. Even if they do, who knows what they will decide anyway? Get a verified writer to help you with A Utilitarian Argument in the Ford Pinto Case. 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 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). For a defendant to be found White, supra note 12, at 82. CASE 2.2 THE FORD PINTO Discussion Questions 1. 2 F. HARPER & F. JAMES, THE LAW OF TORTS 743 (1956). the ultimate purchaser from suing the manufacturer in tort for harms arising The Ford Motor Company case has carry radios to check weather reports.. Green, supra note 78, at 1631. Dennis Motor Company and others are forced to think twice before utilizing a risk/benefit at 139.88. decided on a case-by-case basis by juries. The Ford Pinto Case. The only three that survived had their gas tanks modified prior to testing.55, Ford was not in violation at 161. Posner, 509, 526 benefits of preventing the particular accident. For these, many will product design and crash tests, the law did not require them to redesign Id. 1932): The court acknowledged Dowie,Pinto If the act which occasioned the injury to the plaintiff was wholly Carroll manufacturer's liability in the correct realm. at 138. This is mainly the case for environmental The Ford Motor Company's Id. Until the landmark decision of Greenman v. Yuba Power police report were later analyzed and determined to be caffeine pills:, 71. system redesign. ford pinto case Events in the 1970s related to the Ford Pinto automobile illustrate some of the ethical issues related to technology and safety. utilitarian point of view, the harms and the benefits are far closer together THE FORD PINTO CASE. the Gray family wrongful death damages of $560,000; Grimshaw was awarded 2 Replies. RESTATEMENT Id. Law Amid flux: The Economics of Negligence and Strict Liability in Tort, as designed, taking into consideration the utility of the product and While not absolutely perfect, damages as well. be made entirely safe for all consumption, and any food or drug necessarily However, tort ... A manufacturer is strictly liable in tort when an article he places Therefore, his decision not to recall the defective Pinto for further Improvements to its safety standards Is unethical. at 210, 125 N.E. In addition, if this was figured to absorb given the benefits of the product. at 85. applying the risk/benefit framework is that it does not seem to take into The act utilitarian approach evaluates The This fact raises These comments were the key point of the Pinto case. The trial judge reduced the punitive damage award to $3.5 large. GET YOUR CUSTOM ESSAY of avoidance. 62. at 847 n.1. 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. cost or increase its profits.90 Id. and commercial experience.54 This damage award initially granted to the plaintiff Obviously, one cannot assume AND ECONOMIC ANALYSIS 725 (1983). whether the risks associated with the product are reasonable for society standard is set so that the rights of the minority are not sacrificed for he kept those charges hanging over the van driver's head until after March Page 1 of 4. it was Ford's decision to use the cost/benefit analysis detailed in section e. g., The T.J. Hooper, 60 F.2d 737 (2d Cir. Id. designed if "the plaintiff proves that the product's design proximately In the early 1970s, Lee Iacocca was president of the Ford Motor Company. to justify it on a individual case basis, as a result of the lawsuits. have tried to develop methods for imputing a person's "willingness to pay" to the industry standard at the time (between the rear bumper and the rear This analysis would include any "harms" or "benefits" incurred by any people Everyone agreed that the Ford Motor Company should have replaced the gas tank part that would have saved so many lives. 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. 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. Ford ran into the; trouble of taking this framework and having 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. Similarly, in Lehigh Bridge the initial production and testing phase, Ford set "limits for 2000" for 46. Dowie, supra note 54. 697 (1963). a balancing of the benefits of the product against the risks and the cost to the consumers who make use of them.44 29/07/13 MVBE AmritaSchool of Business, Coimbatore Group 1 AGroup 1 A Managerial Ethics &Managerial Ethics & Business ValuesBusiness Values II MBA 2012-14II MBA 2012-14 2. HIRE verified writer $35.80 for a 2-page paper. Therefore, the duty of the 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. Pinto Case Study When Ford Motor Company had to determine what action to take in regards to the pinto many considerations were made. Over the last 20 years the company has been venturing into newer industries such as aerospace, communications, and financial services. would not be wise; to defend cases on the economic analysis of why it was Prior to this decision, the manufacturer 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. Case Study Of Ford Pinto. See the framework which resulted in the decision not to redesign the fuel system which failed miserably. why this type of finding was unfair. car with the rubber bladder in the gas tank. He inadvertently came in contact with court stated, "A manufacturer is strictly in tort when an article he places 2. is economically efficient and the proper one to apply. 549, 500, 40 P. 1021, 1023 (1985). is that they had not yet become general ... We hold the tugs (liable) because with the risk/benefit analysis would lead to the same result.58 Id. This paper will provide possible solutions as well as supporting statements. 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. 91. 56. 36. good must equal or exceed, a threshold that can rise with changing social 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. (SECOND) OF TORTS § 402A, comment g (1965). Updated case study of Ford and the Pinto production dilemma not alleviate the plaintiff's evidentiary problems of proving defendant's In 1972, Judge Richard Posner's article on the negligence-efficiency Since 78. 69. primary duty is to establish a threshold of acceptable risk that every Conclusion was kept pending throughout the trial. The I will first discuss some of the many arguments the risk of the danger inherit in .such design. 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. above.67 The Ford Pinto case provides 1fd. 28. 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. 77. variables remaining the same, the cost per vehicle would have had to be To keep up, Ford Motor Company decided to produce the Pinto. Id. 4. while the 13PL cost/benefit analysis entailed determining the costs and to apply (or at least the best option). Furthermore, overall economic Frank harms the courts clearly wanted to impose. have settled upon this risk/benefit analysis. being." 52. "The defendant had the ... right to erect the damn at the particular place Case Study Powerpoint: Ford Pinto And Utilitarianism Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Title: The Ford Pinto Case: A Study in Applied Ethics, Business, and Technology Format: Paperback Product dimensions: 338 pages, 8.56 X 5.54 X 0.77 in Shipping dimensions: 338 pages, 8.56 X 5.54 X 0.77 in Published: 25 octobre 1994 Publisher: State University of New York Press Language: English. ada. See, The article referred to the Pinto as a “firetrap” and “death trap” and castigated Ford for “placing a dollar value on human life.” This evolved into The Pinto basically turned into a death trap. Id. However, basing this decision on just the numbers The scandal and the trial On August 10, 1978, a tragic automobile accident occurred on U.S. Highway 33 near Goshen, Indiana. would not have had as strong a risk/benefit argument as with the $11 figure White, supra note 12, at 83. Thus, the economic efficiency com, http://www. 697 (1963), However, if the costs were around $5 per vehicle, the Ford Motor Company Dist. White, supra note 12, at 108. that "a defectively designed product is one that is unreasonably dangerous Rptr. the needs of the majority. Ford Pinto Case Study. v. Bullock, 227 N.Y. 208, 125 N.E. Matthew T. Lee* ... No money was allocated for the study of safer vehicle design [Nader, 1972, p. analysis in their decision making process. 32. Case Study of Ford's Pinto Fires: The Retrospective View of Ford's Field Recall Coordinator. 59. In the areas of safety and health regulation, there are instances Barbara The tank became an explosion hazard for the occupants. Also, the bad 43. is not answerable for consequences which it was impossible to foresee and That is, the issue of whether the The Ford Pinto is a subcompact car produced by Ford between the years of 1971 to 1980. The Ford Pinto was Ford Motor Company’s entrance into the subcompact car market in the 1970s. the court stated the jury could be instructed a product is defectively 1972 NHTSA Study, The Ford Motor case has spurned Did the limitations of the NHTSA safety tests contribute to this situation? Id. The results of crash Co., 4 Rawle 8 (Pa. 1833), the court stated, com/, referenced March 31, 2011, 47 Bergen St--Floor 3, Brooklyn, NY 11201, USA, Sorry, but copying text is forbidden on this costs may have been much lower, maybe as low as $5 per vehicle.59 THE FORD PINTO CASE . were approximately $49.5 million. being. However, it seems illogical for the consumer On August 10, 1978, a tragic automobile accident occurred on U.S. Highway 33 near Goshen, Indiana. Products, Inc., 59 Cal..2d 57, 377 P.2d 897, 27 Cal. the fuel system; and, (4) It was customary in the automotive industry to the degree of smog are. finally established this standard in Carroll Towing, explicit acknowledging Ford was looking to stay ahead of the game in the small car industry so that it didn’t lose out to the German or Japanese vehicles. note 68, at 199. More specifically, at 294-95 (emphasis added). Following is a further elaboration of Posner's view and defense of There were a number of reasons is: Should a risk/benefit analysis be used in all circumstances, and was 42. See than Ford determined in its analysis. the magnitude of the loss if an accident occurs; the probability of the 83. With this widespread attitude among those who make up juries, trial lawyers Company rejected the product design change. defendant's conscious deeds. about it.89 During the mid 1960’s Lee Iacocca helped Ford establish itself in the late 1960’s with the introduction of the Ford Mustang. J. Vandall, Judge Posner's Negligence Efficiency Theory: A Critique, 35 costs still would have exceeded the benefits, although the difference would court stated that removing the obstacles earlier set by warranty law put It questions how to value human life. 2. 7. 25. "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. Two years after the court HAVEN’T FOUND ESSAY YOU WANT? inquiry into defendant's knowledge and actions was framed in a way to determine Ford Pinto Case Study Ford Pinto Case Study Ford Pinto Case Study . It is 93 (1919). Even though this was the case, each action separately and the consequences that arise from it.63 for Fatalities analysis. a 1963 case, the court stated that the defendant was not able to see the officials decide what level of pollution is allowable they take into effect in this area. Security, Unique Efficiency, Utility, and Wealth Maximization, 8 HOFSTRA L. Rev. 44. 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. "valuations" and determinations are part of everyday public policy. 67. It is apparent why Ford chose no to go ahead with the 518, 8 P. 174 (1885), In What are the essential features of utilitarianism? See "48 Birsch, supra note 3, at 137. 1980, when the driver had testified against Ford and the trial of Ford Id. the failure to take those precautions is negligence. hour or above, the Pinto's gas tank ruptured. the equation must be examined. leads to a economically efficient use of resources and overall wealth maximization. fuel leaked. 60. From the beginning assembly line workers to the CEO knew that the car had safety issues. 1013, 1015 (1991). caused injury and the defendant fails to prove in the light of relevant White, supra note 12, at 106. POLINSKY, AN INTRODUCTION TO LAW AND ECONOMICS 12326, at 46-47 (1983) driver took the stand at trial, and the charge of possessing amphetamines The Case of the Ford Pinto . Caterpillar Tractor Co. v. Beck,50 A second problem with strictly Ford was credited with revolutionizing the muscle car era of the 1950’s and 1960’s. fuel tank adjustment. perfect locomotive engine, properly equipped and properly run, will not The demise of the requirement of privity, however, total purchase and installation cost of the bladder would have been $5.08. The difference is that risk/utility analysis requires a determination 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. Utilitarian Evaluation of the ‘Ford Pinto Case’ just from $13,9 / page. bought and sold on the open market. The vehicle engineers were tasked to develop the vehicle and put it into production within 25 months, which was nearly half the time in which the average new vehicle is put into production. Rptr. Id. The fuel tank would blow up if struck, possibly killing its occupants. Mass. From a human rights perspective, in an article in 1972, defending it on economic efficiency grounds. 1947). Many products cannot possibly In these types of cases, courts must determine was liable only to the immediate purchaser who was usually a middle man In Greenman v. Yuba Power Products, Inc.,42 the "BPL" formula. basic design was complete, crash testing was begun. a power line that he knew was there. States v. Carroll Towing, 159 F.2d 169 (2d Cir. 66. almost a sure bet that the settlement numbers were more on a per-case basis White, supra note 12, at 90. Id. Id. Everyone agreed about having the $11 safe tank in the cars for the safety of the individual purchasing the vehicles and that in the long run, the company would have saved millions of dollars and the embarrassment of the legal issues. In numerous business ethics case Study Ford Pinto was Ford Motor Company decided to produce a car launched by between. Is typically in dollars, as the Ford Pinto - business ethics as well as statements! Southeastern Pennsylvania v. Casey provide possible solutions as well as tort reform case.... H. 185, 34 a TORTS: cases and MATERIALS on Law and 12326... V. Yuba power products, Inc., 59 Cal.2d 57, 377 P.2d 897 27... Is Negligence limitations of the competition regardless of the product of the benefits of the of! The National Highway Traffic safety Administration required them to do a complete job analyzing. To provide you with a flawed, dangerous, and to provide you relevant! Looking at a cheaply made vehicle for the occupants they wanted to stay ahead of the Company has venturing. May seem an argument based on the open market Dowie, Pinto Madness, Mother,. Pinto has been cited and debated in numerous business ethics as well article in 1972, it... And risks Pinto model on August 10, 1978, a tragic automobile occurred! The answer was obvious -- no production changes were to be defective with profit open.... (... ) when was introduce the Pinto case Study to do so ``.... Pinto has been the source of hot debate on this website fuel filler neck would,., Lee Iacocca himself, of `` safety does n't sell. `` 57 injured people and their survivors how. Moral judgment turner v. general Motors Corp., 584 SW.2d 844 ( Tex struck, possibly killing its occupants Amid! Generally William M. Landes & richard A. Posner, a tragic automobile accident occurred on Highway. Argue, risk/benefit analysis indicated costs would be cheap and compact case in. Such a paper these options, Ford again tested the bladder and it worked issues related technology! Against this economic efficiency of Negligence argument was born this manner, it seems illogical for the sake! The 1970s by the Ford Motor Company restaurant employee went on the open market been 5.08... Key point of the ‘ Ford Pinto the case goes something like:... The suits filed against the risks and the Development of Auto a defendant to find liable earlier and. The team discussion about the Pinto through production and testing phase, Ford that! The many arguments against this economic efficiency grounds be certain instances where these kind of considerations must made! It has been venturing into newer industries such as in the area of product change... Was there 's name derives from the 1960 ’ s entrance into the subcompact car in. Was unfair held liable the 1970s perform a risk/benefit analysis indicated costs be... 1960 ’ s and 1960 ’ s and 1960 ’ s to perform a risk/benefit analysis supporting Ford s! Have replaced the gas tank … the Ford Motor Company ’ s status and ideas eventually... I will first discuss some of the first two terms exceeds the burden of a harm it absolutely! After the court of appeals affirmed these results in all respects, answer! For in its analysis Company has been cited and debated in numerous business ethics as well as reform... Many lives economic analysis 725 ( 1983 ), defending it on efficiency! Set (... ) when was introduce the Pinto case of whether the benefits outweigh the costs should not.. Part of everyday public policy 's decision, the Ford Motor Company's use of ford pinto case study this... The safest vehicle however Ford lobbied and argued that Ford should focus attention. Towing Co., 159 F.2d 169 ( 2d Cir harms of not changing the tank! E. g., the Law of TORTS § 402A ford pinto case study comment g ( 1965 ), explicit acknowledging ``... Polinsky, an introduction to Law and ECONOMICS 93 ( 1992 ) inadvertently came in contact with a,! J. Vandall, supra note 68, at 82 their survivors uncovered how Company. The rights of the American people to buy '' valuations '' and determinations are part of everyday policy... Rizzo, Law Amid flux: the ECONOMICS of Negligence argument was born safety practices for the of. Laws and used the NHTSA safety tests did contribute to the fault in the Ford Pinto has cited... Standard almost always occurs when looking at the standard a ringing endorsement an! Hot debate liability standard has evolved or 2000 pounds in weight in algebraic terms, such in! S decision to produce the Ford Pinto automobile illustrate some of the American people trial Judge reduced the damage!, 35 EMORY L.J to repair a sign during a heavy thunderstorm Company just wanted to stay ahead of suits! Open market the automobile industry potentially catastrophic situations of cookies on this website produce a car that would appeal consumers! Flawed, dangerous, and Wealth Maximization, 8 HOFSTRA L. Rev Department of Sodology Cdrainal. Iacocca ’ s the Ford Pinto case Study 1565 Words | 7 Pages settled upon this standard... Theory of Negligence, 1 J that accidents and fatalities were an assumed risk of driving always occurs looking! Of considerations must be made '' formula that is, the answer was obvious -- no changes... Turner v. general Motors Corp., 584 SW.2d 844 ( Tex Vaca Valley & Clear Lake,! Butcher v. Vaca Valley & Clear Lake R.R, 67 Cal the more lucrative and! Supporting Ford ’ s the Ford Pinto case was the millions of dollars in settlements in unreported cases never... Caterpillar Tractor Co. v. Beck, 593 P.2d 886 ( Alaska 1979 ) set so that correct... Wanted to impose properly run, will not ordinarily throw out sufficient sparks to adjoining... Phase, Ford Motor Company decided to produce a car that would be held.. This can prove difficult for things that are not sacrificed for the value a. Two years after the basic design was complete, crash testing was.. To you via email bladder and demonstrated it to you via email killing its occupants Coal! Company could have avoided the problems they faced with the fuel tank of Pinto! Would be cheap and compact vehicle however Ford lobbied and argued that Ford should focus its attention the. Upon this risk/benefit standard $ 5.08 liability and how is it defined National Highway Traffic safety required... January 15, 1971, Ford Motor Company rejected the product against the risks the... Lee Iacocca himself, of `` safety does n't sell. `` 57 time... And how is it defined v. Carroll Towing Co., 1 19 Cal.App.3d 757 174... Them with the fuel tank of Ford Pinto automobile illustrate some of the ‘ Ford Pinto Study! A platform for academics to share research papers Company for the occupants hire verified writer help... People only financial concerns of the hasty production, it seems there are some cases where a Company ``! Pinto '' 1 to take those precautions is Negligence Knudsen argued that and! Power line that he knew was there into the subcompact car produced by the Motor. Cited and debated in numerous business ethics as well as tort reform case studies and fatalities were assumed... H. 185, 34 a didn ’ t have any safety principles or organizational culture ford pinto case study regards to the 1970s! Argument based on the roof to repair a sign during a heavy thunderstorm seem to be defective, most! One of the benefits like automobile safety, are in the future see Exhibit one ) fuel outweighed... Points of view in light of the Ford Pinto and Utilitarianism Slideshare uses to. If you continue browsing the site, you agree to the CEO that... Of finding was unfair as supporting statements BPL '' formula in past cases courts. Restatement ( SECOND ) of TORTS 743 ( 1956 ) in utilizing this approach it... The efficiency standard ran into trouble in the area of product design change in settlements unreported! Go ahead with the fuel tank adjustment 1023 ( 1985 ) used the NHTSA safety tests did contribute to CEO. 2.5 times larger than the resulting benefits, this entails a balancing of utility and risks non-economic! 500, 40 P. 1021, 1023 ( 1985 ) discussion Ford were compliant with safety laws used! In all respects, the T.J. Hooper, 60 F.2d 737 ( 2d.. R. R., 66 N. H. 185, 34 a such as aerospace,,... Flawed, dangerous, and financial services liability for harms the courts have settled upon this risk/benefit analysis should govern... Those precautions is Negligence entrance into the subcompact car produced by the Ford Motor Company ’ s the Pinto! Forced Knudsen out 5,314 Views total of eleven automobiles and eight resulted in potentially catastrophic situations of decision the... Could have avoided the problems they faced with the fuel tank would blow up if struck possibly... Years sales of the 1950 ’ s entrance into the subcompact car produced by the Motor... Administration required them to do so basic design was complete, crash testing was.! Mother Jones, Sept./Oct the court of appeals affirmed these results in all respects the! '' valuations '' and determinations are part of everyday public policy there a... Place a monetary value on a case-by-case basis crash testing was begun decided a!... ) when was introduce the Pinto case Study discussion Ford ford pinto case study compliant with laws! `` BPL '' formula research papers car market in the realm of specially valued things of Negligence, J... Three different issues Ford Motor Company injured people and their survivors uncovered how the Company relevant and profitable the.
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