Legal Systems_Chinese Tires

Nhtsa sent the importer a letter on june 26 saying

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all of its findings and the government ordered a recall. NHTSA sent the importer a letter on June 26 saying the company's inability to afford the recall, which Kuskin estimates will cost $90 million, is "not acceptable." For its part, Hangzhou Zhongce says the tires aren't defective and questions whether a recall is even necessary. Attorneys for the Chinese firm met with NHTSA on July 11 and asked for a chance to prove that its tires are safe, says a person familiar with the meeting. The company also says incorrectly sized tires may have played a role in the fatal accident. Meanwhile, the attorney representing the victims of the Pennsylvania crash is gearing up for a major legal battle. Jeffrey B. Killino, who works for the law firm Woloshin & Killino in Philadelphia, plans to make the
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case that Foreign Tire waited too long to issue a recall. "I'm going to build a case that they should be criminally indicted," he says. "It was my case that prompted the recall." Kuskin denies he waited too long to alert NHTSA and says his tires not only meet government standards but also that his firm volunteered that the tires failed its own more stringent tests. As he ponders his future, Kuskin says he is trying to apply the lessons he has learned from his experience. "We didn't have a formal schedule" to test tires, he says, but now the company tests one a month. Kuskin also plans to write new contracts that would obligate Chinese manufacturers to help pay for future recalls and ensure that disputes are settled in Hong Kong, where the legal system is more sophisticated than China's. As he takes out ads in newspapers urging consumers to turn in their recalled tires, Kuskin harbors hopes of making his Chinese partner pay. He says he has had "reasonable conversations" with the U.S. law firm recently retained by Hangzhou Zhongce. "We intend to be made whole by Hangzhou," he says.
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QUESTIONS FOR DISCUSSION 1) Towards the American consumers who is responsible for the problematic tires, Mr. Kuskin or Hangzhou Zhongce, the manufacturer? 2) Under the U.S. legal system, who is to be blamed for the tire problems? 3) So far, how responsive has been the Hangzhou Zhongce regarding Mr. Kuskin’s claims over tire quality? Why? 4) If we assume that the Chinese manufacturer is not subject to the U.S. laws, why would they hire an attorney to represent them in the U.S.? HINT: Which other company did they hire in the U.S. regarding this case? 5) In your opinion, what is the probability to for Mr. Kuskin to win the lawsuit against Hangzhou Zhongce pay for the tire accidents? 6) What kind of business/legal advice would you give to Mr. Kuskin to overcome his problems?
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