Denny V. Ford Motors

Problem Solution Analysis Paper

MGT 623 Legal and Ethical Issues in Management

1. What did Nancy Denny think she was buying?

Nancy Denny believed she was buying a Ford Broncho II. The Broncho II was considered to be fashionable and suitable to contemporary lifestyles. The vehicle has the ability to switch between two-wheel and four-wheel drive. This feature would be appealing to women because the vehicle could drive safer on snow and ice.

2. What did she buy?

Nancy bought the vehicle due to the safety benefits four wheel drive and had no interest in using it for any off road purposes. She made the purchase after it was marketed to her as a vehicle that she can use for suburban driving and everyday road travel.

3. On what legal theories did she sue?

Nancy approached the legal battle on three grounds. First was product liability. A manufacturer that puts a product on the market in a defective condition is liable for any injuries that arise as a result from the use of the product when the product is used for its intended use or reasonable purpose. Nancy had to prove that the Broncho II was on the market in a defective condition. The vehicle had a low stability index attributed to its high center of gravity and narrow track width. Ford argued that the features were necessary for the vehicles off road purposes. It was designed to be an off-road vehicle and not recommended for use as a passenger vehicle. The second point was negligence related to if the person selling or Ford know the product was defective. The third reason is a breach of the warranty claim. Law implies that a warranty by a manufacturer which it places on a product is a reasonable fit for its intended purpose. If it is defective and not reasonable fit for its intended use, the warranty is breached.

4. On what basis did she win?

Nancy Denny won because the court found that Ford had breached its implied warranty of merchantability and that the breach was the cause of her...