Consumer Protection Part 4

Right to Redress

  • Definition: The right to redress is aimed at addressing legal wrongs that arise from breaches of contract.

  • Objective: To compensate individuals suffering loss or injury due to wrongful acts of others.

  • Remedies: Provides remedies for the invasion of protected interests.

Case Study: Fox vs. Enterprise Car Rental Company

  • Background:

    • Hock Sisters: Rachel (24) and Jackson Lane (20) rented a 2004 Chrysler PT Cruiser on October 7, 2004, in Norton, California.

    • Car Recall: The vehicle had been recalled due to a steering wheel leak that could lead to loss of control.

    • Prior Rentals: This particular vehicle had been rented out three times before the sisters took it.

  • Incident Details:

    • The PT Cruiser lost control on the highway, crashed into a semi-truck, and burst into flames, causing injuries to the sisters.

    • Enterprise's Defense: Initially argued the driver lacked driving skills.

    • Recall Ignored: Later investigation revealed that Enterprise had ignored the recall notice, which prohibited renting out such a vehicle.

  • Settlement Attempts:

    • Offered $3 million settlement with a gag order, which the parents refused.

    • Legal Battle: Enterprise prolonged the case for five years until a jury awarded the parents $15 million.

  • Corporate Conduct:

    • A statement from an Enterprise manager highlighted their unethical handling of safety risks.

    • New Legislation: The Rachel and Jack Clean Hock Safe Rental Car Act of 2015 was passed, prohibiting the rental or sale of recalled vehicles and mandating that rental companies ground such vehicles.

  • Industry Responses:

    • Rental companies argue for compensation for lost revenue during recall periods.

    • Auto manufacturers maintain significant influence over legislative actions, resulting in minimal change regarding financial compensation mechanisms.

Tort Reform in Medical Malpractice

  • Proponents' Perspective:

    • Belief that high awards contribute to rising healthcare costs.

    • Argument for capping compensation awards to reduce defensive medicine practices (unnecessary tests for legal protection).

    • Concerns that doctors avoid high-risk specialties due to malpractice costs.

  • **Opponents' Perspective: **

    • Emphasis on the right to full compensation for injured parties.

    • Warning against the erosion of jury independence with statutory caps on awards.

    • Assertion that pain and suffering cannot justifiably be capped.

  • Hospital Errors & Malpractice Crisis:

    • Allegations claim that a third of U.S. deaths stem from hospital mistakes, approximately 251,000+ annually (2016 study by British Medical Journal).

    • Journal of Patient Safety suggests true numbers could range from 220,000 to 440,000.

Monopolization of the American Economy

  • **Current State: **

    • Graphs show U.S. economy's entrepreneurial activity has declined, with reduced entry and exit rates.

    • Significant industry concentration: Reduction from 50 firms in 1980 to just 6 dominating the market.

  • **Consequences of Monopolization: **

    • Reduced Competition: Leads to higher prices and controlled wages.

    • Political Influence: Larger corporations wield greater political power affecting policy decisions.

  • Antitrust Laws:

    • Historical Enforcement Decline: Enforcement of antitrust laws has significantly decreased since the 1980s.

    • Political Party Focus: Lack of attention to antitrust issues in both Democratic and Republican platforms, essentially disappearing after 1996 until 2012.