Thursday, June 11, 2009

Product Liability and the Chrysler Deal

Chrysler's bankruptcy will leave lots of people empty-handed. Among them are accident claimants who seek compensation when a faulty Chrysler vehicle causes injury or death. Under terms approved on June 1 by U.S. Bankruptcy Court Judge Arthur J. Gonzalez, the "new" Chrysler emerging from bankruptcy won't be liable for product defect claims involving any cars sold before it came into existence.

Read the rest of the Business Week article here.


Anonymous said...

The bankruptcy loophole (that Business Week implicitly references) is being exploited by both Chrysler and GM--and is not only a national disgrace with respect to those injured who will be left in the lurch, it effectively turns the 40 million Chrysler and GM vehicles currently on the road into "ticking time bombs."

Eclecticity said...

I call "bullshit" on that. E.