In the 1970's the Ford Motor Company sold its subcompact Pinto model with known design defects. In particular, the gas tank's design and location led to rupture, leaks and explosion in low-speed, rear-impact collisions. Fifty-nine people burned to death in Pinto accidents. In a cost-benefit analysis weighing the cost of fixing the defects ($11 per vehicle) versus the firm's potential liability for lawsuits on behalf of accident victims. Ford had placed the value of a human life at $200,000. Ford eventually recalled 1.4 million Pintos to fix the gas tank problem for a cost around $35 million. In addition the automaker ultimately paid out millions more in liability settlements and incurred substantial damage to its reputation. a. Critique Ford's actions from the perspective of the NSPE code of Ethics. b. What should engineers do when the product they are designing has a known safety defect with an inexpensive remedy?
In the 1970's the Ford Motor Company sold its subcompact Pinto model with known design defects. In particular, the gas tank's design and location led to rupture, leaks and explosion in low-speed, rear-impact collisions. Fifty-nine people burned to death in Pinto accidents. In a cost-benefit analysis weighing the cost of fixing the defects ($11 per vehicle) versus the firm's potential liability for lawsuits on behalf of accident victims. Ford had placed the value of a human life at $200,000. Ford eventually recalled 1.4 million Pintos to fix the gas tank problem for a cost around $35 million. In addition the automaker ultimately paid out millions more in liability settlements and incurred substantial damage to its reputation. a. Critique Ford's actions from the perspective of the NSPE code of Ethics. b. What should engineers do when the product they are designing has a known safety defect with an inexpensive remedy?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer both
![In the 1970's the Ford Motor Company sold its subcompact Pinto model with
known design defects. In particular, the gas tank's design and location led to
rupture, leaks and explosion in low-speed, rear-impact collisions. Fifty-nine
people burned to death in Pinto accidents. In a cost-benefit analysis weighing
the cost of fixing the defects ($11 per vehicle) versus the firm's potential liability
for lawsuits on behalf of accident victims. Ford had placed the value of a human
life at $200,000. Ford eventually recalled 1.4 million Pintos to fix the gas tank
problem for a cost around $35 million. In addition the automaker ultimately paid
out millions more in liability settlements and incurred substantial damage to its
reputation.
a. Critique Ford's actions from the perspective of the NSPE code of Ethics.
b. What should engineers do when the product they are designing has a
known safety defect with an inexpensive remedy?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1fd2adf1-87eb-47a5-a57a-89f9ab7d0fa7%2F4e8f558a-6074-4810-b89d-d2505d0e1401%2F0515ez_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In the 1970's the Ford Motor Company sold its subcompact Pinto model with
known design defects. In particular, the gas tank's design and location led to
rupture, leaks and explosion in low-speed, rear-impact collisions. Fifty-nine
people burned to death in Pinto accidents. In a cost-benefit analysis weighing
the cost of fixing the defects ($11 per vehicle) versus the firm's potential liability
for lawsuits on behalf of accident victims. Ford had placed the value of a human
life at $200,000. Ford eventually recalled 1.4 million Pintos to fix the gas tank
problem for a cost around $35 million. In addition the automaker ultimately paid
out millions more in liability settlements and incurred substantial damage to its
reputation.
a. Critique Ford's actions from the perspective of the NSPE code of Ethics.
b. What should engineers do when the product they are designing has a
known safety defect with an inexpensive remedy?
![- If there are only two alternatives available and both are unpleasant and
undesirable and there is no do nothing option, what should you do?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1fd2adf1-87eb-47a5-a57a-89f9ab7d0fa7%2F4e8f558a-6074-4810-b89d-d2505d0e1401%2Fzp7km2b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:- If there are only two alternatives available and both are unpleasant and
undesirable and there is no do nothing option, what should you do?
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