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SITUATION

The Amigo Company manufactures motorized wheel chairs in Its Bridgeport Michigan, plant, under the surervision of Alden Thieme. Alden is the brother of the Itmia product are Individuals wtio have already suffered physical and emotional pain.

Therefore, if an accident occurred and resulted In a liability suit, a jury might be strongly tempted to foot the plaintiff. In fact, the company is currently facing litigation. A woman in an Amigo wheelchair was killed by a car on the street. Because the driver of the car had no insurance, Amigo was Sued.

QUSTIONS

1. Do you agree that the type of customer to whom the Amigo Company sells should influence its decision regarding insurance?

2. In what way if any, should the outcome Of the current litigation affect Amigo's derision about renewing its insurance coverage?

3. What options does Amigo have If it drops all insurance coverage? What is your recommendation?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M91937993

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