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Team Reflection: Week 6 Rac Brief – Case 2

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Team C Learning Team Reflection: Week 6 RAC Brief – Case 2 Donald Britt, Lauren Batinich, Linda Carucci, Megan Johnson, and Gene McCutchen
Law/531
June 8, 2015
Robert Reimer

Learning Team Reflection: Week 6 – Case 2
The second learning objectives for this week concerns domestic and international business activities. The Team Assignment this week is to write a case brief using the IRAC method concerning the legal risks associated with domestic and international business activities, as well as, explain how the legal concepts in the chosen case applied in a business managerial setting. Case: On July 10, 2014, a class action lawsuit was filed by Dennis Gray Trucking, Carmichael Leasing, and GTL Enterprises against Navistar International in the United States District Court for the Northeastern District of Illinois Eastern Division (Jaillet, 2014). The Plaintiffs allege that the Defendant knowingly sold EGE-only MaxxForce engines which were defective. In addition, Plaintiffs allege that the Defendant concealed those defects from all individuals who purchased said engines (Jaillet, 2014).
Issue: Did Navistar International sell defective products and conceal the defects?
Rule: Under the Consumer Product Safety Act (CPSA) there are federal statutes which regulate potentially dangerous consumer products and are created by the Consumer Product Safety Commission (Chessman 744). These statues are enforced through consumer product safety alerts to ensure all consumes are well aware of the issues found with the products.

Analysis: A business is liable for the products they make and stand behind. If the manufacturer of the MaxxForce engines knew the product had defects and Navistar concealed those problems from buyers each company should be held liable. When these problems came to light, Navistar purposefully failed to properly repair the engines during the warranty period. Thereby decreasing their trucks’ value and shortening the expected life of the engine. The lack of action and denial of responsibility for faulty engines shows that Navistar violated the Consumer Product Safety Act (CPSA). In the suit engineer’s working on the project gave Navistar information proving the MaxxForce engines would become defective and difficult to replace due to the physics of the project. Also in the suit Navistar intimidated its own employees not to speak to anyone regarding the engine. The suit calls for punitive damages, attorney’s fees and court cost. A jury was also requested in the suit. Conclusion: If Plaintiffs can successfully provide evidence and prove that Defendant was aware of the defects in the EGR-only MaxxForce engines then Plaintiffs should prevail and the Defendant should be held liable in this case.
Legal Concepts in Case

References: Jaillet, J. (2014). Class-action lawsuit accuses Navistar of knowingly selling defective engines. Retrieved on June 2, 2014 from http://www.overdriveronline.com/class-action-lawsuit-accuses-navistar-of-knowingly-selling-defective-engines US EPA (n.d.). Permitting (NPDES). Retrieved on May 30, 2015 from http://water.epa.gov/polwaste/npdes/
Cheeseman, Henry R.. Business Law, 8th Edition. Pearson Learning Solutions, 2012. VitalBook file

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