100%(26)26 out of 26 people found this document helpful
This preview shows page 1 - 4 out of 7 pages.
Running head: DUALPLEX 3601Dualplex 360 ReportTeam Six MembersSeptember 3, 2019University of Maryland University CollegeMBA 630
DUALPLEX 3602Case OverviewNew Brand Design (NBD) is a Colossal Corporation subsidiary in Serafin. NBD designs and produces groundbreaking electronic products then distributes them globally for resale. Six months ago, NBD began manufacturing and selling a new convertible laptop known as the Dualplex 360. Consumers have reported that some of the laptops have overheated and ignited when they remained plugged into a power outlet for an extended period of time. This resulted in some users being burned and their property damaged.NBD’s research and development team had full knowledge of the overheating problem at the time they placed the Dualplex 360 on the market. However, after conducting a cost-benefit analysis, they determined that it was more cost effective to payout legal claims than to redesign and remanufacture a new laptop. They made a decision to conceal the defect, but included a disclaimer in the instruction manual, stating that the laptop should not be plugged in after the battery is fully charged. They also stated that there were no warranty of merchantability or fitness for the particular use of the laptops, and that the seller explicitly disclaimed all warranties and that there were no express or implied warranty. Thus far, all the cases of overheating have occurred due to consumers the laptops pluggedin after they were fully charged. Some consumers have claimed that they did not read the manualand therefore did not see the warnings. We will review the possibility that NDB will be held liable for the overheating laptops and the ensuing injuries and damage to property.
DUALPLEX 3603Legal ClaimsFollowing a review of the Dualplex 360 case file, we are concerned that the consumers could file claims for negligence on the part of New Brand Design (NBD) because of their failure to inform consumers about the overheating problems that were discovered during research and development. They could also submit claims of strict liability for the commercial sale of a