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Prod_Liability_Case_Group_Qs_S08 - settlement proposal as...

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PAM 423 Questions for Case Assignment 3 Group Portion of Assignment Spring 2008 Due Date: Thursday April 17, end of class Instructions Answer these questions based on discussion within your group. Turn in a single written response for the group, and attach each group member’s answers to the individual case questions. The Cornell Honor Code applies to the use of materials from sources other than your group members’ opinions and answers to the individual portion of the assignment. Please put all participants’ names and your group number on the group answers. 1. Merck initially set aside $675 million for legal defense costs and analysts estimated that the company could face up to $50 billion in liability costs. Recently, Merck proposed a novel settlement with plaintiffs valued at less than $5 billion. Some analysts have criticized the Merck
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Unformatted text preview: settlement proposal as unethical. Do you agree or disagree with this view? Dow Corning ultimately declared bankruptcy due to the liability claims filed against it. What accounts for the differences in the outcomes for these two firms? Do you think that this response was ethical? As an ethical (not a legal) matter, do you think that Dow Chemical should be financially liable for damages assessed against Dow Corning? a. Describe the rationale for each point of view for each case. b. Report how your group (or how the individuals in your group) come down on these ethical questions for the two cases. 2. What effect, if any, do you think that limited liability may have had on the product safety investments of the firms (Dow and Merck) involved in these two cases?...
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