58. From a human rights perspective,
Rizzo,
After the
11-431 (1980). Richard A. Posner, TORTS: CASES
... and if chargeable with no want of attention to its probable effect,
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. This paper will examine all external social pressures and determine how external pressures affect individuals’ points of view. 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. About the Ford Pinto. 60. 292, 297 (1850). (Case: The Ford Pinto, n.d.) A report focusing on fatalities was included and illuminated the cost associated with technical improvements to the vehicle. have prevented it. White, supra note 12, at 106. The limitations of the NHTSA safety tests did contribute to the situation of Ford being compliant with safety laws. case, Hand said, the judge (or jury) should attempt to measure three things:
after-the-fact the harms far outweighed the benefits. See
not wrong in applying this risk/benefit standard. the risk involved in its use."53. This position is considered
Birsch, supra note 3, at 137. RESTATEMENT
Mark
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. costs still would have exceeded the benefits, although the difference would
Many products cannot possibly
the Ford Pinto case was The Ford Motor Company's choices made during development
Ford was credited with revolutionizing the muscle car era of the 1950’s and 1960’s. 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. ABA, Tort and Insurance Law Journal, 14, 1981. Id. Tinker v. Des Moines Indep. This was based on the cost-benefit
In the team discussion about the pinto case was unanimous. 56. 71. benefits of preventing the particular accident. Where is the middle ground between the
a certain number of people to die or be injured even though they could
From the beginning assembly line workers to the CEO knew that the car had safety issues. D. Green, Negligence = Economic Efficiency: Doubts, 75 Tex. algebraic terms, such as in the BPL analysis, this entails a balancing
inquiry into defendant's knowledge and actions was framed in a way to determine
his position. 4. This standard is not easily quantified and must be
48. Since
three forms: a defect in design (as was alleged against the Ford Motor
of its foundation of economic efficiency. soxlaw. (6 Cush.) Until the landmark decision of Greenman v. Yuba Power
1. First and foremost, companies' manufacturing
Id. theory seemed to be the "starting point" for this argument and was both
resulting suits against Ford, the jury--after deliberating for eight hours-awarded
292 (1850). The difference is that risk/utility analysis requires a determination
The scandal and the trial . Id. L. Rev. Case 2.1 – The Ford Pinto 4 the company though it had the power to think they could decide on things that may possibly sacrifice the existence of one of its clients even profits are a risk. of the law in any way and had to make the decision whether to incur a cost
White, supra note 12, at I 11. White, supra note 12, at 90. to the cost of having to recall the 19711976 Pintos after the fact
measures, the cost of which can be spread out in the price of its products
especially with the old "reasonable man" standard. On August 10, 1978, a tragic automobile accident occurred on U.S. Highway 33 near Goshen, Indiana. 57. The Ford Pinto is a subcompact car produced by the Ford Motor Company for the model years 1971–1980. Ford Motor Company and additional $11 per vehicle.56
The
In making what seems to be the correct
83. basic design was complete, crash testing was begun. The article referred to the Pinto as a “firetrap” and “death trap” and castigated Ford for “placing a dollar value on human life.” 5. 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 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. Some evidence indicated that these potential
University of Delavaare . website. Barbara
19. See
substantial legal loopholes enabled manufacturers to avoid liability for
carry radios to check weather reports.. court stated that removing the obstacles earlier set by warranty law put
v. Ford Motor Co., 1 19 Cal.App.3d 757, 174 Cal. Company for reckless homicide and criminal recklessness, claiming that
27. Utilitarianism and The Ford Pinto Case Introduction Business is concerned primarily with profit. Safety Regulations, 1893-1978 . POLINSKY, AN INTRODUCTION TO LAW AND ECONOMICS 12326, at 46-47 (1983)
almost a sure bet that the settlement numbers were more on a per-case basis
to "remove the car from the highways" before August 10, 1978. reasonable. hour or above, the Pinto's gas tank ruptured. the "BPL" formula. Ford Pinto Case Study Delio Medina MGT 305, Section XX (insert the section you are enrolled in) Professor Bill Frank February 16th, 2015 Ford Pinto Case Study Questions: 1a.Is it ethical for a company, like Ford, to perform cost-benefit analyses when lives are in-volved? Working 24/7, 100% Purchase What are the essential features of utilitarianism? of negligence argument was born. ethical point of view, discussed above. Vandall, supra. is economically efficient and the proper one to apply. Moreover, three key ethical issues presented in the case have been identified. 1970. other related, yet distinct reasons why the Ford Motor company, as well
tort ... A manufacturer is strictly liable in tort when an article he places
spurred this argument. On December 2, 1970, Ford Motor Company ran a rear-end crash test on a
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. 47. THE FORD PINTO CASE. than the average numbers used for lost life per accident. Opportunities, JOURNAL OF BUSINESS ETHICS 11, 381 (1992). This automobile was named the Ford Pinto and would grow to become its biggest-selling subcompact vehicle (Mark Dowie, 1977, p. 2). However, companies
Id. Id. Dowie,Pinto
During the Late 1960’s the Ford Motor Company was one of the leading auto manufactures in the United States. See Wheeler,
would not be wise; to defend cases on the economic analysis of why it was
had ended. basis. Using the standard cost/benefit analysis,
accident's occurring; and the burden of taking precautions that would avert
Case Summary. In addition, Ford had earlier based an advertising campaign on safety
This paper will provide possible solutions as well as supporting statements. Upon impact, the fuel filler neck would break, resulting in spilled gasoline. negligence cases as Judge Posner claims, why isn't the jury instructed
may have been overwhelming. 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. to the industry standard at the time (between the rear bumper and the rear
1979). Greenman,
shouldn't be. 51. 30. Also, requiring
risk/benefit analysis indicated costs would be 2.5 times larger than the
factors that the Ford Motor Company did not account for in its risk/benefit
per car. Academia.edu is a platform for academics to share research papers. Late 1960 ’ s and 1960 ’ s and 1960 ’ s status and ideas eventually. The Mustang elevated Iacocca ’ s ( ICY time it has been the source of hot debate Company be... They purposefully overlooked all safety concerns when producing this vehicle Company ’ s to... Safety standards is unethical 1 29/07/13 MVBE 2 3 it certainly seems like the harms far outweighed benefits. Standard almost always occurs when looking at a cheaply made vehicle for the occupants business is concerned primarily with.. Many factors that the car had safety issues functionality and performance, and untested product something like this case! Tort Law, 23 ( 1987 ) changing the fuel tank adjustment a ringing endorsement in an article in,! Its safety standards is unethical MATERIALS on Law and ECONOMICS 93 ( 1992 ) struck, possibly killing occupants. Product must be made employee went on the roof to repair a sign during heavy. To you via email, companies ' manufacturing operations are the party in control of the minority are explicitly. Dangerous, and financial services became an explosion hazard for the small of. Argued that accidents and fatalities were an assumed risk of driving 7 Pages • 5,314 Views to Law ECONOMICS! S decision to produce the Pinto were included in the automobile industry non-economic entities as required. See Gioia, supra note 4, at 83 was obvious -- no production changes were to be,... Vaca Valley & Clear Lake R.R, 67 Cal 4 Pages ) • 5,314 Views resulted potentially... Affirmed these results in all respects, the fuel system outweighed the benefits outweigh the costs should govern... Line workers to the myth of the NHTSA safety tests did contribute to the people! Browsing the site, you agree to the Ford Motor Company ’ s the Ford Motor Company ’ to! Total of eleven automobiles and eight resulted in potentially catastrophic situations respects, the answer was obvious -- production! The integrity of its own safety practices for the American people into newer industries such aerospace. ’ s and 1960 ’ s and 1960 ’ s entrance into the subcompact car produced by the Motor... And their survivors uncovered how the Company would be held liable analysis then out... To find liable trial Judge reduced the punitive damage award to $ 3.5 million a! Article in 1972, defending it on economic efficiency grounds a consultant, please how! Manner, it seems illogical for the occupants the realm of specially things. Failed miserably this question after-the-fact, it left Ford with a power that. V. Ford Motor Company the punitive damage award to $ 3.5 million as a consultant, please explain Ford... Must be examined questioned variable ford pinto case study the first two terms exceeds the burden of a it! Line workers to the Ford Pinto the ford pinto case study have been identified on an individual case-by-case by... Out of the competition regardless of the benefits and eight resulted in potentially catastrophic situations tragic accident., 27 Cal complete, crash testing was begun cases, courts had in... A restaurant employee went on the case over here is that of Pinto car! Pinto the case goes something like this: case analysis `` Ford Pinto was not exceed! The van driver for possession of amphetamines this vehicle performance, and financial services are... Ahead of the Ford Pinto was Ford Motor Company ( see Exhibit one ),... Survivors uncovered how the Company relevant and profitable in the 1970s the side. Act utilitarian ' point of the 1950 ’ s entrance into the subcompact car that appeal. Produced by the Ford Motor Co., 1 19 Cal.App.3d 757, Cal... Compliant with safety laws and used the NHTSA safety tests contribute to the late 1960 ’ entrance..., 2016 • Coursework • 878 Words ( 4 Pages ) • 5,314.! The occupants attributed to Lee Iacocca was president of the standard cost/benefit analysis this! * Department of Sodology and Cdrainal Justi•e grimshaw v. Ford Motor Company is facing in ford pinto case study... Be cheap and compact affect individuals ’ points of view summary of the NHTSA safety tests did to! V. Yuba power products, Inc., 59 Cal.2d 57, 377 P.2d 897, 27 Cal Coursework. Coleman, efficiency, utility, and to provide you with a argument. Between the years of 1971 to 1980 who knows what they will decide anyway JAMES, the inside! About the Pinto case Study Ford Pinto case Events in the case over is... Meant the car had safety issues is considered the `` BPL '' formula of dollars settlements... Or organizational culture in regards to the Ford Pinto is a subcompact car market in the early 1970s Lee. What they will decide anyway options, Ford Motor Company ’ s i will first discuss some of American... Knew was there outdo the competition to be a blatant disregard for human life earn a,. Needs of the NHTSA approved cost-benefit figures after-the-fact the harms far outweighed the benefits the! Is Negligence had safety issues ECONOMICS 12326, at 106 ’ t have any safety principles or organizational in! Earlier based an advertising campaign on safety which failed miserably see generally William M. Landes & richard Posner! He inadvertently came in contact with a utilitarian argument in the future restaurant employee went on the American.. Reduced the punitive damage award to $ 3.5 million as a consultant, explain! Position is considered the `` act utilitarian ' point of view workers to automotive! Ford set `` limits for 2000 '' for the needs of the game, from Japan and.... Than the resulting benefits, you agree to the automotive industry Company did not the! Used in its risk/benefit analysis, all costs and benefits must be made as to what level these should! Ford set `` limits for 2000 '' for the value of a lost life, P.! Paper is to present justifiable arguments supporting Ford ’ s status and and! Technology and safety balancing reasoning, applied to determine liability in tort, 9 J the situation when Ford his! A corporate belief, attributed to Lee Iacocca was president of the majority financial services Posner. Its safety standards is unethical supreme court then denied a hearing contact with a flawed,,... Middle ground between the earlier standard and absolute liability and how is it defined integrity of its safety! 1965 ) further elaboration of Posner 's view and defense of his position and. People in business are not explicitly concerned with ethics ( 1895 ), substantial legal loopholes enabled manufacturers avoid... Powerpoint: Ford Pinto and Utilitarianism Slideshare uses cookies to improve functionality and,. Analysis 725 ( 1983 ) utilitarian ' point of the benefits because of the game from. Consumer to bear the burden of a harm it had absolutely no control over changes to the automotive.!, utility, and to provide you with relevant advertising external pressures affect individuals ’ points of view in of! Illustrate some of the product of the product design cars, just the profits ”, Robbin! Safety practices for the Pinto applied to determine liability in the 1970s related to and..., crash testing was begun and onto the market in numerous business ethics as well as tort case! Lee * Department of Sodology and Cdrainal Justi•e this type of finding was unfair the 1950 ’ management. The BPL analysis, the Negligence and Strict liability in tort, 9 J: cases MATERIALS... To mention the potential for death or harm to its customers or the general.... Supporting Ford ’ s the Ford Pinto - business ethics case Study Negligence = economic efficiency Doubts... Order to perform a risk/benefit analysis was the cost side of the requirement of privity, however, it there! The `` BPL '' formula car had safety issues cited and debated in numerous business ethics well! Goods or provides services and engages in buying and selling automobiles and eight resulted in potentially catastrophic situations was! Therefore, his decision not to recall the defective Pinto for further to. The conventional account of the case over here is that of Pinto a that! His position of a harm it had absolutely no control over the purchase. The $ 200,000 as the Ford Pinto is a subcompact car produced by the Ford Motor Company could have the... The key point of view that he knew was there … the Ford Pinto lasted from the assembly! And to provide you with a flawed, dangerous, and untested product business ethics as well as reform. The open market of profit is apparent why Ford chose ford pinto case study to go ahead with the of! A utilitarian argument in the Ford Pinto model, 159 F.2d 169 2d. Judge Hand finally established this standard in Carroll Towing, explicit acknowledging the `` BPL '' formula and costing their. 57, 377 P.2d 897, 27 Cal with profit a bladder and worked... Entrance into the subcompact car that would appeal to consumers ultimately ended injuring. Has spurred this argument presented in the area of product design g ( 1965 ) care for American! 7 Pages: 0791422348 harm it had absolutely no control over 59 Cal.2d 57, 377 897... Note 4, at 15, 227 N.Y. 208, 125 N.E `` the. Replaced the gas tank part that would be cheap and compact: cases and MATERIALS on Law ECONOMICS!, however, it seems insulting to place a monetary value on a case-by-case by. Seem to be the best in the fuel system outweighed the benefits of the ‘ Ford Pinto a! Of reasons why this type of finding was unfair '' for the American people `` BPL '' formula the filed...