Tort Reform Firestone Based on Case Study

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Some legislators believe that such suits encourage companies to ensure that there products are safe. Other law makers, however, believe that such suits are excessive and can prevent companies from being able to recover.

Another form of tort reform that as been suggested is known as "loser pays. This type of legislation is based on the English Rule (Protecting Firestone and Ford Federal Tort Reform). This particular proposal would force the loser in a lawsuit to pay all the expenses associated with bringing the lawsuit (Protecting Firestone and Ford Federal Tort Reform). This is already a part of the rules of the court in the British system. The purpose of such a reform is to minimize the number of frivolous lawsuits that end up in court. Having such a law discourages people from filing suits that cannot be won. These lawsuits also encourage people to settle their differences outside of the courtroom. Such reforms are present in various judicial systems throughout the world and serve the purpose of reducing the expense and time associated with the filing of law suits and going to court.

3. What laws (if any) have passed since the tire recall (in response to the tire recall)?

The main law that was inspired by the firestone recall was passed in 2000 by President Clinton.

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This bill is known as the Tread Act. ("Transportation Recall Enhancement, Accountability, and Documentation"). According to the National Highway Traffic Safety Administration "The TREAD Act was enacted on November 1, 2000, as a direct consequence of hearings before the Committee on Energy and Commerce on the safety of Firestone tires and related matters. In the course of the hearings, the Committee determined that NHTSA could have detected the problems with the tires sooner if it had obtained reports about the tires problems in a timelier manner (Tread Act)."

As a result of the hearing Clinton signed into law the Tread Act which contains provisions related to mandating that vehicle and equipment manufacturers to send reports to the Highway Traffic Safety Administration concerning any potential safety hazards associated with their products. In addition the Act was designed to increase the civil penalties associated with manufacturers that violate established vehicle safety laws. The act also contains criminal penalties for not reporting or providing false information concerning defects. In addition the act gives the secretary of the National Highway Traffic Safety Administration the authority to demand that manufacturers resolve any problems associated with a defective product create a fast remedy to the problem so that the public can be as safe as possible.

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