Mitsubishi Motors Corporation Product Liability Lawsuit

Abstract

This research paper aims to highlight the theories of product liability and product negligence by analyzing a product liability lawsuit filed against Mitsubishi Motors Corporation in 2004. An overview of the company along with the concerned case has been presented initially to facilitate greater comprehension of the concepts. The same has been analyzed under the legal theories, where I have also presented my analysis on the settlement and the basis of conflict between the two parties. Lastly, as the company enjoys a global presence and brand acceptance in several major markets, recommendation have been highlighted that must be catered to maintain a competitive edge in the fast-changing business environment of today.

Table of Contents

Abstractii

Discussion1

Company Overview1

Mitsubishi Product Liability Lawsuit:1

Legal Theories Attended to in Mitsubishi Lawsuit:2

Product Liability Theory3

Product Negligence Theory3

Strict Liability Theory4

My Analysis of the Product Liability Case:5

Lawsuit Implications on Mitsubishi Motors5

Regulatory Agency6

Recommendations:6

References7

Discussion

Company Overview

Mitsubishi Motors Corporation is a Japanese company that has over the years established itself as a key player in the global automobile industry. The product mix offered by the company ranges from the manufacturing and marketing of automobiles as well as engines for industries. The company currently employs a total workforce of 30,709 professionals and has expanded successfully into several leading global market including those of Asia, Europe and North America. In addition, the company boasts a vertically integrated structure that facilitates its operations worldwide and also allows it to cater to the manufacture of a full line of automobile components required for its products. An analysis of the company report as of 2012 reveals that there might be issues pertaining to high inventory levels and higher competitive forces in the automotive industry that may strike across as potential threats for the company.(Mitsubishi Motors Corporation, Market Line) Lately, the cases related to product liability and callbacks have also aroused concerned amongst the customers relating to the initial promise of quality and reliable products by the brand.

Mitsubishi Product Liability Lawsuit:

The case under discussion caters to product liability lawsuit of a Mitsubishi product component. The vehicle addressed to in this case is 2000 Mitsubishi Nativa. On September 25th 2004, two individuals, Lyann Agresar and Scott Laliberte were riding the vehicle. While Lyann was driving, Laliberte was seated in the main passenger seat in the front. A mere loss of control over the vehicle due to high speed, reportedly, at seventy to eighty miles per hour, resulted in a rollover accident. As the vehicle rolled over a couple of times, Laliberte's seat belt malfunctioned and tore loose so much that he was partially ejected from the vehicle resulting in severe head injuries from striking against the ground and hence ultimate death.

The product component and product liability issue in consideration here is that of the reliability of the seat belt which not only malfunctioned at the eleventh hour but also provided an additional ten inches of webbing as per the design. The malfunctioning caused the seatbelt to recline rearward to extent of contact with the rear seat of the ...