Legal Issues in Product Liability - Assignment Example

According to ‘Appendix F: Federal Prosecution of Business Organizations', the prosecution of a liability by a corporate entity should follow a well-laid-down procedure, which entails investigating the corporate failure, determining whether a charge is warranted, and negotiating for the corporate entity and the affected parties to reach an agreement, or enter a plea (Hasl-Kelchner, 2006). In this respect, the National Highway Traffic Safety Administration is applying this procedure to determine the culpability of Ford Company for the steering wheel problems, and to establish whether the company deserves to be charged for the failure.

According to ‘Appendix F: Corporate Disclosure of relevant Facts’, a corporation must disclose the relevant facts about a product released, so that the consumers can be fully aware of the nature of the product they are purchasing (Hasl-Kelchner, 2006). In this respect, the National Highway Traffic Safety Administration is investigating whether the Ford Motor Company was aware of the steering wheel problems with its cars but failed to recall them back in good time (Jensen, 2014). If the company is found to be culpable for the non-disclosure of facts regarding this product, then it will be charged with a criminal offense.