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(TCOs B, C, G. I) It has been discovered that there is a serious problem with seat belt latches in several different models of cars sold by United States Motors (UAM). Investigative reporting has discovered that many people within the company have known about the issue for years mentioning the high cost to correct in internal memos. It is unclear whether and when Executive management knew of the problem. Over the years there have been many deaths and serious injuries as a result of the problem. The NHTSA drafts a new regulation that mandates that any suspected automotive manufacturing or design defect shall be immediately reported to the media and to the NTSHA with an automatic recall occurring whenever there are more than 10 defects reported. With regard to this proposed new regulation, what options are available to USM and other auto manufactures? What must they do?. (Points : 15)

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