This report analyzes the employment law issues arising out of Colossal's subsidiary New
Brand Design Inc. New Brand Design (NBD) is a company that designs, brands, and
manufactures innovative electronic products, and markets and distributes those across the globe.
NBD has been manufacturing and distributing a laptop computer name Dualplex 360 (UMGC,
2020a). The product was out to the market six months ago and selling out in the United States
and Europe. However, customers reported that some laptops shipped to the United States have
overheated and ignited when plugged into a power source for a long time. It has burned users and
damaged properties in a few cases. NBD's development team was fully aware of the defect, but
based on cost-benefit analysis, determined that the payouts from the lawsuit would be less than
the cost of redesigning and manufacturing a new laptop. The development team and research
covered up the defect but included a disclaimer statement in the instruction manual. However,
the instruction manual didn't contain possible warnings regards to overhearing or danger issue.
Although there is a warning statement in the instruction manual, customers ignored the warning
or never read the instruction manual, so they did not notice it. This case is involving potential
consumer claims against the NBD. This report will contain an analysis of the possible types of
claims that the US customers could file in court against NBD, types of damages could be
awarded under the claims and NBD's defenses.
Given what is happening with the Dualplex 360, list the types of claims that the US
customers could file in court against NBD and the arguments they might make for each
element of their claims.
US customers could file a negligence claim under tort law. Negligence is a legal doctrine that
underlies many types of lawsuits and requires one to be at fault for committing the act, and the
plaintiff must prove five elements (UMGC, 2020b):