[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.00,0:00:01.34,Default,,0000,0000,0000,,STRIKER: Whatcha looking at?
Dialogue: 0,0:00:01.34,0:00:02.79,Default,,0000,0000,0000,,WOMAN: The Pinto.
Dialogue: 0,0:00:02.79,0:00:06.15,Default,,0000,0000,0000,,STRIKER: I like it. My kind of car.
Dialogue: 0,0:00:06.15,0:00:06.94,Default,,0000,0000,0000,,WOMAN: Oh really?
Dialogue: 0,0:00:06.94,0:00:10.18,Default,,0000,0000,0000,,STRIKER: Sub-compact. Lots of trunk space. What's the price?
Dialogue: 0,0:00:10.18,0:00:12.57,Default,,0000,0000,0000,,WOMAN: Under 2,000 dollars.
Dialogue: 0,0:00:12.57,0:00:12.72,Default,,0000,0000,0000,,STRIKER:Huh?
Dialogue: 0,0:00:12.72,0:00:14.07,Default,,0000,0000,0000,,WOMAN: In 1971.
Dialogue: 0,0:00:14.07,0:00:15.70,Default,,0000,0000,0000,,STRIKER: Oh that makes sense.
Dialogue: 0,0:00:15.70,0:00:17.19,Default,,0000,0000,0000,,Still a good deal though.
Dialogue: 0,0:00:17.19,0:00:19.98,Default,,0000,0000,0000,,But why is it here in the law museum?
Dialogue: 0,0:00:19.98,0:00:24.86,Default,,0000,0000,0000,,WOMAN: The Pinto was at the center of a very important trial in 1979,
Dialogue: 0,0:00:24.86,0:00:27.60,Default,,0000,0000,0000,,State of Indiana v. Ford Motor Company.
Dialogue: 0,0:00:27.60,0:00:30.60,Default,,0000,0000,0000,,This was the first time an American corporation was
Dialogue: 0,0:00:30.60,0:00:34.02,Default,,0000,0000,0000,,criminally prosecuted and the whole country was watching.
Dialogue: 0,0:00:34.02,0:00:35.00,Default,,0000,0000,0000,,STRIKER: Why?
Dialogue: 0,0:00:35.00,0:00:37.74,Default,,0000,0000,0000,,WOMAN: Everybody wanted to see if a company could be
Dialogue: 0,0:00:37.74,0:00:40.34,Default,,0000,0000,0000,,punished criminally for creating a product,
Dialogue: 0,0:00:40.34,0:00:43.38,Default,,0000,0000,0000,,in this case, an automobile that was unsafe.
Dialogue: 0,0:00:43.38,0:00:44.69,Default,,0000,0000,0000,,STRIKER: Yipes!
Dialogue: 0,0:00:56.00,0:00:58.71,Default,,0000,0000,0000,,STRIKER: So what was wrong with the Pinto?
Dialogue: 0,0:00:58.71,0:01:03.08,Default,,0000,0000,0000,,WOMAN: Well, the Pinto was created to satisfy two main objectives.
Dialogue: 0,0:01:03.08,0:01:08.15,Default,,0000,0000,0000,,Lee Iacocca, who was executive vice president of the Ford Motor Company,
Dialogue: 0,0:01:08.15,0:01:12.26,Default,,0000,0000,0000,,tasked his engineers with creating a car that would weigh less
Dialogue: 0,0:01:12.26,0:01:16.62,Default,,0000,0000,0000,,than 2,000 pounds and cost less than 2,000 dollars.
Dialogue: 0,0:01:16.62,0:01:20.99,Default,,0000,0000,0000,,German and Japanese manufacturers were making lots of money producing
Dialogue: 0,0:01:20.99,0:01:25.98,Default,,0000,0000,0000,,sub-compact cars and Ford Motor Company wanted in on the action.
Dialogue: 0,0:01:25.98,0:01:26.97,Default,,0000,0000,0000,,STRIKER: What's wrong with that?
Dialogue: 0,0:01:26.97,0:01:30.56,Default,,0000,0000,0000,,WOMAN: Well, nothing but I haven't finished the story.
Dialogue: 0,0:01:30.56,0:01:36.11,Default,,0000,0000,0000,,Ford was in a hurry to introduce their car into the market so they
Dialogue: 0,0:01:36.11,0:01:42.22,Default,,0000,0000,0000,,accelerated their production time from their usual 43 months to 25 months.
Dialogue: 0,0:01:42.22,0:01:43.94,Default,,0000,0000,0000,,Compromises were made.
Dialogue: 0,0:01:43.94,0:01:47.27,Default,,0000,0000,0000,,Serious risks associated with the placement of
Dialogue: 0,0:01:47.27,0:01:53.32,Default,,0000,0000,0000,,the Pintos fuel tanks were ignored despite crash tests resulting in flames.
Dialogue: 0,0:01:53.32,0:01:54.24,Default,,0000,0000,0000,,STRIKER: Flames?
Dialogue: 0,0:01:54.24,0:01:55.100,Default,,0000,0000,0000,,WOMAN: Yes, flames.
Dialogue: 0,0:01:55.100,0:01:59.24,Default,,0000,0000,0000,,The rush design placed the fuel tank behind
Dialogue: 0,0:01:59.24,0:02:03.54,Default,,0000,0000,0000,,the rear axle instead of over it like most sub-compact cars,
Dialogue: 0,0:02:03.54,0:02:06.98,Default,,0000,0000,0000,,this left only 9 or 10 inches of crush space.
Dialogue: 0,0:02:06.98,0:02:11.03,Default,,0000,0000,0000,,Other design flaws included a thin strip of chrome for
Dialogue: 0,0:02:11.03,0:02:15.24,Default,,0000,0000,0000,,a bumper and a lack of reinforcement around the fuel tank.
Dialogue: 0,0:02:15.24,0:02:19.07,Default,,0000,0000,0000,,The results? At speeds over 25 miles per hour,
Dialogue: 0,0:02:19.07,0:02:24.46,Default,,0000,0000,0000,,the fuel tank ruptured every time it experienced a rear impact.
Dialogue: 0,0:02:24.46,0:02:26.56,Default,,0000,0000,0000,,STRIKER: Yipes! That looks deadly.
Dialogue: 0,0:02:26.56,0:02:27.60,Default,,0000,0000,0000,,WOMAN: It was.
Dialogue: 0,0:02:27.60,0:02:28.82,Default,,0000,0000,0000,,STRIKER: Couldn't they fix it?
Dialogue: 0,0:02:28.82,0:02:31.86,Default,,0000,0000,0000,,WOMAN: They certainly could have improved the situation.
Dialogue: 0,0:02:31.86,0:02:33.89,Default,,0000,0000,0000,,Engineers at Ford came up with
Dialogue: 0,0:02:33.89,0:02:38.72,Default,,0000,0000,0000,,several modifications to significantly improve the safety of the vehicle.
Dialogue: 0,0:02:38.72,0:02:40.36,Default,,0000,0000,0000,,STRIKER: So they did make it better?
Dialogue: 0,0:02:40.36,0:02:40.92,Default,,0000,0000,0000,,WOMAN: No.
Dialogue: 0,0:02:40.92,0:02:41.74,Default,,0000,0000,0000,,STRIKER: How come?
Dialogue: 0,0:02:41.74,0:02:47.77,Default,,0000,0000,0000,,WOMAN: Well, despite the cost being only 11 dollars per car, Ford declined.
Dialogue: 0,0:02:47.77,0:02:48.36,Default,,0000,0000,0000,,STRIKER: Why?
Dialogue: 0,0:02:48.36,0:02:49.82,Default,,0000,0000,0000,,WOMAN: It's hard to say.
Dialogue: 0,0:02:49.82,0:02:53.93,Default,,0000,0000,0000,,However, we can gain some insight into the corporate mentality
Dialogue: 0,0:02:53.93,0:02:58.06,Default,,0000,0000,0000,,at Ford from an internal report regarding safety,
Dialogue: 0,0:02:58.06,0:03:00.01,Default,,0000,0000,0000,,which was leaked to the media.
Dialogue: 0,0:03:00.01,0:03:01.14,Default,,0000,0000,0000,,STRIKER: What did it say?
Dialogue: 0,0:03:01.14,0:03:04.28,Default,,0000,0000,0000,,WOMAN: The document, nicknamed the Pinto Memo,
Dialogue: 0,0:03:04.28,0:03:07.43,Default,,0000,0000,0000,,was created by several analysts at Ford.
Dialogue: 0,0:03:07.43,0:03:12.59,Default,,0000,0000,0000,,It compared the cost of making safety improvements in advance with the cost
Dialogue: 0,0:03:12.59,0:03:18.10,Default,,0000,0000,0000,,Ford would most likely incur through death and injury lawsuits and lost vehicles.
Dialogue: 0,0:03:18.10,0:03:19.04,Default,,0000,0000,0000,,STRIKER: What?
Dialogue: 0,0:03:19.04,0:03:22.35,Default,,0000,0000,0000,,WOMAN: It's called a cost-benefit analysis.
Dialogue: 0,0:03:22.35,0:03:26.51,Default,,0000,0000,0000,,Ford estimated that if they did not fix the safety issues,
Dialogue: 0,0:03:26.51,0:03:29.27,Default,,0000,0000,0000,,there would be 180 deaths,
Dialogue: 0,0:03:29.27,0:03:34.01,Default,,0000,0000,0000,,180 injuries, and 2,100 vehicles destroyed.
Dialogue: 0,0:03:34.01,0:03:39.58,Default,,0000,0000,0000,,They even determined a value for each loss, $200,000 per death,
Dialogue: 0,0:03:39.58,0:03:42.54,Default,,0000,0000,0000,,$67,000 per burn injury,
Dialogue: 0,0:03:42.54,0:03:45.41,Default,,0000,0000,0000,,and $700 per lost vehicle,
Dialogue: 0,0:03:45.41,0:03:49.55,Default,,0000,0000,0000,,which was the average resale value of a Pinto at that time.
Dialogue: 0,0:03:49.55,0:03:50.76,Default,,0000,0000,0000,,STRIKER: That's crazy.
Dialogue: 0,0:03:50.76,0:03:57.11,Default,,0000,0000,0000,,WOMAN: The public especially didn't appreciate their $200,000 valuation of a human life.
Dialogue: 0,0:03:57.11,0:03:58.42,Default,,0000,0000,0000,,STRIKER: Uncool.
Dialogue: 0,0:03:58.42,0:04:03.35,Default,,0000,0000,0000,,WOMAN: They compared these costs to those associated with redesigning and installing
Dialogue: 0,0:04:03.35,0:04:08.69,Default,,0000,0000,0000,,better safety features on the 12.5 million cars they expected to sell.
Dialogue: 0,0:04:08.69,0:04:11.78,Default,,0000,0000,0000,,The cost was only $11 per vehicle.
Dialogue: 0,0:04:11.78,0:04:12.79,Default,,0000,0000,0000,,STRIKER: And the result?
Dialogue: 0,0:04:12.79,0:04:17.78,Default,,0000,0000,0000,,WOMAN: They determined it will cost the company approximately $49 million in
Dialogue: 0,0:04:17.78,0:04:22.82,Default,,0000,0000,0000,,lawsuits and lost vehicles to sell the Pinto as it was already designed,
Dialogue: 0,0:04:22.82,0:04:24.29,Default,,0000,0000,0000,,or it would cost
Dialogue: 0,0:04:24.29,0:04:32.18,Default,,0000,0000,0000,,approximately $137 million to redesign and improve the safety defect in advance.
Dialogue: 0,0:04:32.18,0:04:34.36,Default,,0000,0000,0000,,STRIKER: What did they decide to do?
Dialogue: 0,0:04:34.36,0:04:35.78,Default,,0000,0000,0000,,WOMAN: What do you think?
Dialogue: 0,0:04:35.78,0:04:37.01,Default,,0000,0000,0000,,STRIKER: Keep the money?
Dialogue: 0,0:04:37.01,0:04:41.59,Default,,0000,0000,0000,,WOMAN: Yep, they save the money and ignored the safety risk.
Dialogue: 0,0:04:41.59,0:04:42.98,Default,,0000,0000,0000,,STRIKER: What happened?
Dialogue: 0,0:04:42.98,0:04:48.76,Default,,0000,0000,0000,,WOMAN: An estimated 27 people were killed in rear-end collisions involving the Pinto.
Dialogue: 0,0:04:48.76,0:04:53.27,Default,,0000,0000,0000,,Upon impact, the fuel tank would puncture and explode,
Dialogue: 0,0:04:53.27,0:04:57.90,Default,,0000,0000,0000,,often sending fuel into the driver's compartment which would then ignite.
Dialogue: 0,0:04:57.90,0:04:59.28,Default,,0000,0000,0000,,STRIKER: That's terrible.
Dialogue: 0,0:04:59.28,0:05:02.28,Default,,0000,0000,0000,,WOMAN: In one of the few cases that made it to trial,
Dialogue: 0,0:05:02.28,0:05:08.32,Default,,0000,0000,0000,,Grimshaw versus Ford, a California jury awarded a boy who had been badly burned,
Dialogue: 0,0:05:08.32,0:05:13.79,Default,,0000,0000,0000,,127 million dollars, 125 million of which was for
Dialogue: 0,0:05:13.79,0:05:19.73,Default,,0000,0000,0000,,punitive damages to punish Ford for its decision to elevate profits over human life.
Dialogue: 0,0:05:19.73,0:05:25.44,Default,,0000,0000,0000,,Although the judge subsequently reduced the punitive damages to 3.5 million,
Dialogue: 0,0:05:25.44,0:05:30.44,Default,,0000,0000,0000,,the unexpectedly high amount sent the Ford Motor Company scrambling.
Dialogue: 0,0:05:30.44,0:05:32.32,Default,,0000,0000,0000,,STRIKER: Scrambling to do what?
Dialogue: 0,0:05:32.32,0:05:37.13,Default,,0000,0000,0000,,WOMAN: To settle as many of their pending cases as possible out of court.
Dialogue: 0,0:05:37.13,0:05:38.68,Default,,0000,0000,0000,,STRIKER: How many cases were there?
Dialogue: 0,0:05:38.68,0:05:42.50,Default,,0000,0000,0000,,WOMAN: Ford was involved in dozens of cases related to the Pinto.
Dialogue: 0,0:05:42.50,0:05:46.91,Default,,0000,0000,0000,,However, their public image was suffering more than their bank account.
Dialogue: 0,0:05:46.91,0:05:52.82,Default,,0000,0000,0000,,Here's an opinion given by a California Appellate Court regarding the Ford Motor Company.
Dialogue: 0,0:05:52.82,0:05:58.10,Default,,0000,0000,0000,,STRIKER: "Ford decided to defer correction of the Pinto's shortcomings by engaging in
Dialogue: 0,0:05:58.10,0:06:04.40,Default,,0000,0000,0000,,a cost-benefit analysis balancing human lives and limbs against corporate profits.
Dialogue: 0,0:06:04.40,0:06:07.40,Default,,0000,0000,0000,,Ford's institutional mentality was shown to
Dialogue: 0,0:06:07.40,0:06:10.61,Default,,0000,0000,0000,,be one of callous indifference to public safety.
Dialogue: 0,0:06:10.61,0:06:15.11,Default,,0000,0000,0000,,There was substantial evidence that Ford's conduct constituted
Dialogue: 0,0:06:15.11,0:06:21.20,Default,,0000,0000,0000,,conscious disregard of the probability of injury to members of the consuming public.
Dialogue: 0,0:06:21.20,0:06:25.96,Default,,0000,0000,0000,,The conduct of Ford's management was reprehensible in the extreme.
Dialogue: 0,0:06:25.96,0:06:29.24,Default,,0000,0000,0000,,It exhibited a conscious and callous disregard of
Dialogue: 0,0:06:29.24,0:06:33.89,Default,,0000,0000,0000,,public safety in order to maximize corporate profits."
Dialogue: 0,0:06:33.89,0:06:35.63,Default,,0000,0000,0000,,Harsh words.
Dialogue: 0,0:06:35.63,0:06:37.94,Default,,0000,0000,0000,,WOMAN: It was a disaster.
Dialogue: 0,0:06:37.94,0:06:42.77,Default,,0000,0000,0000,,In 1976, the National Highway Traffic Safety Administration
Dialogue: 0,0:06:42.77,0:06:46.46,Default,,0000,0000,0000,,finally introduced rear impact safety regulations.
Dialogue: 0,0:06:46.46,0:06:51.50,Default,,0000,0000,0000,,Ford complied with the standards on their new 1977 Pinto model.
Dialogue: 0,0:06:51.50,0:06:56.78,Default,,0000,0000,0000,,However, the NHTSA also announced that a safety defect existed in
Dialogue: 0,0:06:56.78,0:07:03.64,Default,,0000,0000,0000,,the fuel systems of all Pintos manufactured between 1971 and 1976.
Dialogue: 0,0:07:03.64,0:07:09.29,Default,,0000,0000,0000,,Ford was forced to recall and repair 1.5 million cars.
Dialogue: 0,0:07:09.29,0:07:12.82,Default,,0000,0000,0000,,STRIKER: But what about those criminal charges you mentioned earlier?
Dialogue: 0,0:07:12.82,0:07:14.36,Default,,0000,0000,0000,,WOMAN: Oh yes. That's right.
Dialogue: 0,0:07:14.36,0:07:20.04,Default,,0000,0000,0000,,Prior to 1978, Ford had only been sued for monetary damages.
Dialogue: 0,0:07:20.04,0:07:24.60,Default,,0000,0000,0000,,However, that changed on August 10, 1978,
Dialogue: 0,0:07:24.60,0:07:32.40,Default,,0000,0000,0000,,when three teenage girls were driving in a 1973 Pinto down a highway in rural Indiana,
Dialogue: 0,0:07:32.40,0:07:37.92,Default,,0000,0000,0000,,suddenly their gas cap rolled from the top of their car into the middle of the road,
Dialogue: 0,0:07:37.92,0:07:41.60,Default,,0000,0000,0000,,realizing they forgot to attach it after fueling up,
Dialogue: 0,0:07:41.60,0:07:44.73,Default,,0000,0000,0000,,they stopped their car to retrieve it.
Dialogue: 0,0:07:44.73,0:07:46.78,Default,,0000,0000,0000,,Since there was no shoulder available,
Dialogue: 0,0:07:46.78,0:07:49.90,Default,,0000,0000,0000,,they parked their car in a driving lane.
Dialogue: 0,0:07:49.90,0:07:54.65,Default,,0000,0000,0000,,Moments later, a van whose driver was distracted as he searched for
Dialogue: 0,0:07:54.65,0:07:59.85,Default,,0000,0000,0000,,a fallen cigarette hit their Pinto while traveling at 50 miles per hour.
Dialogue: 0,0:07:59.85,0:08:05.58,Default,,0000,0000,0000,,The Pinto burst into flames and all three teenagers were killed.
Dialogue: 0,0:08:05.58,0:08:09.11,Default,,0000,0000,0000,,The state prosecutor charged the Ford Motor Company
Dialogue: 0,0:08:09.11,0:08:12.29,Default,,0000,0000,0000,,with criminal recklessness and reckless homicide.
Dialogue: 0,0:08:12.29,0:08:17.22,Default,,0000,0000,0000,,STRIKER: This was the first time a corporation had ever been charged with a criminal offense?
Dialogue: 0,0:08:17.22,0:08:19.90,Default,,0000,0000,0000,,WOMAN: In a product liability case, yes.
Dialogue: 0,0:08:19.90,0:08:22.58,Default,,0000,0000,0000,,STRIKER: Wow. I'll bet other corporations around
Dialogue: 0,0:08:22.58,0:08:25.34,Default,,0000,0000,0000,,the country were nervous about the outcome of the trial.
Dialogue: 0,0:08:25.34,0:08:26.96,Default,,0000,0000,0000,,WOMAN: Yes, they were.
Dialogue: 0,0:08:26.96,0:08:28.86,Default,,0000,0000,0000,,STRIKER: What did the court decide?
Dialogue: 0,0:08:28.86,0:08:31.62,Default,,0000,0000,0000,,WOMAN: On March 13, 1980,
Dialogue: 0,0:08:31.62,0:08:35.15,Default,,0000,0000,0000,,the jury returned not-guilty verdicts on
Dialogue: 0,0:08:35.15,0:08:39.48,Default,,0000,0000,0000,,all three counts of reckless homicide against the Ford Motor Company.
Dialogue: 0,0:08:39.48,0:08:41.02,Default,,0000,0000,0000,,STRIKER: Really, how come?
Dialogue: 0,0:08:41.02,0:08:46.16,Default,,0000,0000,0000,,WOMAN: The prosecution was unable to show that Ford had failed to warn the public about
Dialogue: 0,0:08:46.16,0:08:52.08,Default,,0000,0000,0000,,the Pinto's defects since Ford had issued a recall prior to the date of the accident.
Dialogue: 0,0:08:52.08,0:08:54.38,Default,,0000,0000,0000,,STRIKER: But the girls didn't hear about the recall?
Dialogue: 0,0:08:54.38,0:08:57.32,Default,,0000,0000,0000,,WOMAN: Yes. But just because you don't hear about something
Dialogue: 0,0:08:57.32,0:09:00.01,Default,,0000,0000,0000,,doesn't mean it didn't happen.
Dialogue: 0,0:09:00.01,0:09:04.85,Default,,0000,0000,0000,,The defense also called several Ford engineers to the stand who
Dialogue: 0,0:09:04.85,0:09:10.48,Default,,0000,0000,0000,,testified they bought 1973 Pintos for their wives, children, and themselves.
Dialogue: 0,0:09:10.48,0:09:13.98,Default,,0000,0000,0000,,This showed their confidence in the safety of the car.
Dialogue: 0,0:09:13.98,0:09:17.69,Default,,0000,0000,0000,,But the main reason Ford Motor won the case was
Dialogue: 0,0:09:17.69,0:09:21.49,Default,,0000,0000,0000,,because the impact happened at 50 miles per hour.
Dialogue: 0,0:09:21.49,0:09:22.48,Default,,0000,0000,0000,,STRIKER: Why did that matter?
Dialogue: 0,0:09:22.48,0:09:27.35,Default,,0000,0000,0000,,WOMAN: Well, not even the new rear impact standard in effect for 1977
Dialogue: 0,0:09:27.35,0:09:32.76,Default,,0000,0000,0000,,models required that car fuel tanks be able to withstand crashes at that speed.
Dialogue: 0,0:09:32.76,0:09:35.48,Default,,0000,0000,0000,,STRIKER: I see. So nothing happened to Ford?
Dialogue: 0,0:09:35.48,0:09:40.44,Default,,0000,0000,0000,,WOMAN: Ford Motor paid out well over $100 million in damages,
Dialogue: 0,0:09:40.44,0:09:44.58,Default,,0000,0000,0000,,endured approximately 117 civil lawsuits,
Dialogue: 0,0:09:44.58,0:09:47.84,Default,,0000,0000,0000,,and recalled 1.5 million cars.
Dialogue: 0,0:09:47.84,0:09:50.09,Default,,0000,0000,0000,,STRIKER: I guess that is pretty significant.
Dialogue: 0,0:09:50.09,0:09:55.74,Default,,0000,0000,0000,,I just feel bad for all the people who unknowingly rode in a car that was clearly unsafe.
Dialogue: 0,0:09:55.74,0:09:59.21,Default,,0000,0000,0000,,WOMAN: No car is ever 100% safe.
Dialogue: 0,0:09:59.21,0:10:03.98,Default,,0000,0000,0000,,Just remember, every time you get into a vehicle, drive carefully.
Dialogue: 0,0:10:03.98,0:10:05.75,Default,,0000,0000,0000,,STRIKER: Buckle up for safety.
Dialogue: 0,0:10:05.75,0:10:07.62,Default,,0000,0000,0000,,WOMAN: Good advice, Striker.
Dialogue: 0,0:10:07.62,0:10:12.92,Default,,0000,0000,0000,,Now, let's see if we can learn some other important lessons from the history of law.
Dialogue: 0,0:10:12.92,0:10:17.06,Default,,0000,0000,0000,,Click on something and let's go explore.