Question

Case analysis # 2 - Siwek took his new Buick to his dealer for minor repairs.

While the car was in the dealer's repair shop, the dealer informed Siwek that the car was equipped with a Chevrolet engine. The standard engine for a car of the model and year in question was a 2.4 litre 4-cylinder manufactured by the Buick division of General Motors. Before the introduction of the year's models, the manufacturer determined that there would not be enough engines built to equip all the Buick models manufactured. For this reason, it was decided to install Chevrolet engines in some Buick cars without disclosing the practice to the buyers.

Siwek complained to the Illinois attorney general, who filed a class-action suit against General Motors charging that GM deceived consumers by not informing them of the engine switch. This case presents both ethical and legal principles.

(i) Please discuss the principles that you think are relevant in this case.

(ii) Does New York have any laws addressing deceptive consumer practices? If so, please cite to the specific laws and summarize them,

(iii) please discuss what, if anything, you would do if you were General Motors and had to defend this case to keep your business alive.

Answer 1

ANSWER :

1. In this case there are three principles that are relevant, namely- Principle of Esprit, Principle of Publicity, and Principle of Purity. These Principles emphasize the truthfulness, purity, and transparency of business activities.

2. Yes, there are laws in New York which protect the consumers from deceptive practices. The Department of Consumer Affairs formulates these laws in consumer’s favor. Followings are some of the specific New York Consumer laws :

· New York Lemon Law: This law protects the right of customers of the automobile industry. This law ensures that automobile companies sell products of set standards.

· New York Deceptive Trade Practices Law: This law protects consumers from deceptive trade practices like false advertisement and fake representation of certification or authority.

· New York Identity Theft laws: This law makes it is prohibited to sell or purchase with a fake identity.

3. We can suggest General Motors that they should pay compensation to all its customers who purchased that particular model of car and they should also release a public apology. It would defiantly help the company to defend its case and improve its image among the customers.