sect16_pros_memo - SECTION 16 CORPORATE CRIMINALITY...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
S ECTION 16: C ORPORATE C RIMINALITY N OVEMBER 9, 2006 P RIMARY C ASE IN S ECTION : F ORD M OTOR C OMPANY Key Facts: - Ford, by 1978, had sold almost 2 million Pintos – a car that had proven to be a major problem for Ford - The development of the car was rushed - President of Ford, Lee Iacocca, insisted that the car be under 2000 lbs and less than $2000 o This proved difficult for engineers - The Pinto passed all federal regulations but didn’t fare well in rear-end collisions o Leading to more than 50 civil suits - Article published in Sept 1977 by Mark Dowie o Ford knew that the Pinto gas tank was unsafe o Failed every collision test when the gas tank was not altered using one of 3 simple methods - A Ford engineer said that even though they knew the car was unsafe, no one would tell Iacocca, who had been the driving force behind the speedy production of the Pintos o Not open to problems raised - Cost benefit analysis to evaluate the costs of the Pinto casualties o Human life worth is $200, 275 o Estimated 180 fiery deaths, 180 serious burn injuries, and 2100 burned vehicles o Damages estimated at $49.5 million - Formal recall issued in June 1978 o Takes a few months to get all the letters out - Judy, Donna, and Lyn Ulrich were from the small community of Elkhart County, Indiana o Weren’t aware of the Pinto recall o Traveling down the road after leaving the gas station, gas cap on top of her. o Gas cap flies off the roof of the car, and Judy waits until it seems safe to make a U-turn, put on her hazards , and get the cap. o Drives slowly towards the lost cap unable to pull over as a result of the 8 inch curb - Robert Duggan is driving down Highway 33 under the 55 mph speed limit o Trying to be more careful after getting his license back after its suspension o Reaches down to grab a pack of cigarettes that has fallen to the floor and when he looks up the Pinto is 10 feet ahead - He hit the Pinto going at approx. 30 mph 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
- Slams into back of Pinto - Gas spills, back is crumpled, can only withstand collisions of 5 – 10 mph - Spark ignites the gas, huge explosion results - Dashboard and steering wheel melt, backseat engulfed by a “solid mass of orange flame” -
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern