The Head of the Department of Transportation Reviewed a Film

question 39

Essay

The head of the Department of Transportation reviewed a film that demonstrated the effectiveness of air bags in automobiles. He then passed a rule that Ford Motor Company must retrofit, without charge to the automobile owner, all of its 1985 models as an experiment on the safety of the air bag. Ford refused to do so. The DOT held a hearing and decided to fine Ford $1 million for violating its regulation. A notification of this decision was mailed to Ford. What constitutional issues does this case raise?

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Definitions:

RMBCA

The Revised Model Business Corporation Act, a set of model laws prepared by the American Bar Association to provide a standard for the governance of business corporations in the United States.

Fundamental Changes

Significant alterations in the operations, structure, or activities of an organization or system that have a profound effect on its function.

Charter Amendments

Changes or modifications made to a corporation’s charter or articles of incorporation, typically requiring approval from shareholders and/or regulatory authorities.

Strict Liability

A legal principle that holds a party responsible for damages or harm caused by their actions or products, without the need to prove negligence or fault.