Abstract
The case discusses the upcoming launch of Katzer Motors Private Limited’s first vehicle in India. The vehicle relies on an internationally developed platform, wherein some defects have been identified. These defects were identified just before the launch, and the management team must now find a solution to the problem. The problem is made acute as in India, there is no legislation or delegated legislation covering the issue of such automobile recall. The management must also grapple with the possible liability arising under tort law, or if the issue is taken up by the superior courts relying upon their inherent powers. This case is meant to make students think about the possible legal and business consequences that may arise out of inherent or manufacturing defects that may be present in a vehicle.
Additional Information
| Product Type | Case |
|---|---|
| Reference No. | BP0433 |
| Title | Automobile recall and liability: Katzer Motors Private Limited |
| Pages | 13 |
| Published on | Mar 12, 2019 |
| Year of Event | 2018 |
| Authors | Ram Mohan, M.P; |
| Area | Strategy (STR) |
| Sector | Government, Manufacturing |
| Learning Objective | 1. Understand decision making with respect to automobile recall or replacement, when there exist no specific laws governing auto recall or replacement in India. 2. Understand litigation risk involved and discussion of the obligation of manufacturers and consumers. 3. Discussing the legal regime covering the sale of automobiles and identification of the avenues before an automobile company to deal with consumer complaints. 4. Norms and practices and methods of addressing issues related to recall or replacement in the automobile industry in India. |
| Keywords | Auto recall; Product Liability; Litigation; Consumer Protection; Legal risk |
| Country | India |
| Access | For All |
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