Business Law Cases Essay Research Paper CHRYSLERCase

Business Law Cases Essay, Research Paper

CHRYSLER-Case Jury Orders Big Payment

CITE: The Wall Street Journal, Friday, February 19, 1999. Page A 3.

FACTS: Chrysler Corp. was the first United States manufacturer to install air bags on the driver s side. These air bags were installed on entire line of domestic passenger cars in the late 1988, 1989 and 1990.

In July 1992, when Louise Crawley drove her 1989 Chrysler LeBaron and collided with another car, the air bag deployed. The deploying of the air bag burned her left hand. At the time, Ms. Crawley was pregnant. After the accident, she was hospitalized, released and referred to a doctor for her burn which healed within a few weeks. Fortunately, she did not have any other injure and her unborn child was not harmed by this accident.

Ms. Crawley led other Pennsylvania owners of certain Chrysler vehicles to file lawsuit to Chrysler Corp. Lawyers of plaintiffs claimed that the location of the air bag s two vents released hot gases. It caused the burning of hands.

The outcome of the case is those plaintiffs win. Chrysler Corp. has to pay an estimated $63.61 million to Pennsylvania owners of certain Chrysler vehicles because of the burning of the air bags when the safety devices deploy. The jury awarded compensatory damages of $730 which is for the cost of a replacement driver s side-bag unit. The jury also awarded the plaintiff $3.75 million in punitive damages to every registered Pennsylvania owner of a Chrysler car for those model years that had a driver side air bag.

According to Chrysler officials, this decision in the Court of Common Pleas of Philadelphia Country represents is the biggest award in an air-bag case. It is also the first verdict in class-action suit which is involving air bags.

LAW: Damage means money. There are two types of damages:

1. Compensatory damages: the court awards certain amount of money to plaintiff to compensate for what he or she has suffered. The amount could be measured by medical expenses, lost wages, pain and suffer of plaintiff.

2. Punitive damages: the punishment of defendant to avoid doing it again. It is also used to be a precedent to tell others not to do it.

Product liability refers to goods which caused an physical or economic harm of a corporation or a natural person.

Strict liability occurs in two business areas. One is ultra hazardous activity. Another one is a defective product.

Defective products: in order to prove the product is defective, a plaintiff must prove all of the following elements:

1. Potential defects:

a) Design;

b) Manufacture;

c) Warning;

d) Unsuitable use;

e) Monitoring.

2. Defendant is selling this kind of things in market.

3. Product reached consumer unchanged.

4. Causes injury.

COMMENT: According to the article, Chrysler-Case Jury Orders Big Payment, about 14 Pennsylvania drivers left hands got burned because of the air bags of Chrysler vehicles. Compensatory damage is decided to compensate the harms of plaintiff. Thus, the decision of the jury is correct. These drivers would get the damage to compensate their injuries. In the case of Ms. Crawley, even her unborn child is safe and did not harm in the incident, she still can get the compensatory damage because her left hand was burned.

The jury should award the punitive damages as well because the corporation should get the punishment in this case. Chrysler Corporation would have some experiment for the air bags before they sold those cars which were installed the air bags on the driver side. Especially, Chrysler Corporations is the first manufacturer to install air bags into the driver side was not usual. They would be extremely careful of this new trying and make sure that it would not harm the drivers who were their customers. Therefore, the corporation was extreme and outrageous in this case. They also responsible for the harm of Pennsylvania Chrysler cars owners and received the penalty which was $3.75 million for punitive damages.

Overall the decision of the jury is just and fair. The outcome of this case also warns manufacturers and producers to aware of the safety of their goods. This case told us that produce defective goods would cost a huge amount of loses. Just like Chrysler Corporation, when they produced cars with driver s side air bag, it helps the promotion and consumption. These cars increase the profit of Chrysler Corporation. After years, they have to pay much more than what they earned because of the defective cars. This case would remind other corporations that they have liabilities on their products. Thus, they would be more careful when they are producing new goods.

FAMILY PLANNING GROUP FACES BIAS COMPLAINT

CITE: The Boston Globe, Thursday, April 15, 1999. Page B1 and B7.

FACTS: Michael Barry who is a Milton man filed a complaint against the Planned Parenthood League of Massachusetts on April 6. He was a director of education and training for the league in the company. He had worked for Planned Parenthood League for about a year. He was fired on October 23, 1998 without a warning. He claimed that he was fired because he is a man and his treatment for hepatitis C.

Barry suffered discrimination because of his disable nature of his

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