Is it Fair?

Like the American case of MacPherson vs. Buick Motor Car (1916) and Donoghue v Stevenson (1932) marks the beginning of manufacturer's liability in the US and UK respectively.

In essence, these cases set the precedent that a consumer injured by the faulty product may claim damages against the maker of the said product.

This enables the consumer to obtain remedy from a party with whom he/her has no direct relationship.

Pro-consumer-protection voices celebrated this development because consumers, who are already at the weaker end of the bargaining scale, now have an avenue for compensation. But producers, on the other hand, argued that this is not fair because it defies the very principle of capitalism.

Required

Discuss whether you agree with the producers' view. Support your answer with relevant ethical theories.

Part 1

This question demands you to have in depth understanding of the capitalist market, how it functions, principles and theories that support it (ie : Adam Smith)

Part 2

Discuss the principles laid by the Court in MacPherson vs. Buick Motor Car (1916) and/orDonoghue v Stevenson, in term of producers' and consumer burden of proof.

Part 3

Discuss whether these cases have forced welfare element that is commonly found in socialism system into a capitalist market.

Part 4

Do you agree or NOT agree with placing the burden of duty of care on businessman.Support your view with relevant theories in Topic 2.