UMUC MBA 630 Dualplex Project 5.docx Nasma (1) (1).docx -...

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Running head: DUALPLEX 3601Dualplex 360 ReportGroup Two: Nasma Mohammed, Nick Arter, Paul LeeUniversity of Maryland Global Campus
DUALPLEX 3602OverviewNew 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.NBDs 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 was no warranty of merchantability or fitness for the particular use of the laptops, and that the seller explicitly disclaimed all warranties and that there was no express or implied warranty. Thus far, all the cases of overheating have occurred due to consumers using the laptops plugged in after they were fully charged. Certain customers argued that they did not read the manual instructions and thus were not aware of the warnings. We will review the possibility that NDB should be held liable for the overheating laptops as well as the ensuing injuries and property damage.
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 NBD because of their failure to inform consumers about the overheating issue that was discovered during research and development. They could

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