Posted: October 19th, 2022

Since the hydraulic brakes have been patented in the U.S. and not yet recalled anywhere, what, if any, liability would Jensen & Reynolds have for the mere sale of the brakes? Would

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-Jensen & Reynolds operate a foreign auto specialty shop where they sell after-market performance products for Audi, BMW, VW, Porsche, and Alfa Romeo. Recently, Reynolds has been buying hydraulic brakes from a new vendor who has just been issued a U.S. Patent for its design. The new brakes can stop a performance vehicle traveling 80mph in just four seconds. They are big sellers and their hefty price tag has increased September’s net profit by 23%. While Jensen was in Brussels on business he had learned that the hydraulic fluid in the brakes had been found to fail in emergency response vehicles power-braking at excessive speeds. Twelve fatal crashes have been blamed on the hydraulic fluid failure in the past three months. When Jensen returns from Brussels he discusses his concerns with Reynolds who dismisses the crash events as being Europe’s problem with excessive speed on tight, antiquated roads. Jensen capitulates, but only after Reynolds agrees to stop selling the hydraulic brakes as soon as they are recalled, even if recalled in Europe first.
Since the hydraulic brakes have been patented in the U.S. and not yet recalled anywhere, what, if any, liability would Jensen & Reynolds have for the mere sale of the brakes? Would a customer who otherwise suffered no physical harm or property damage have standing? Are there ethical issues present that would outweigh their responsibility to run the business at a profit? Use only the facts given and DO NOT create alternative facts that include injury or death to a customer!

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