Electro cart manufactures electronic four-wheeled vehicles


Scenario

Electro Cart manufactures electronic four-wheeled vehicles normally used by golfers to transport golf clubs and up to four people across the golf course. Referred to as low speed vehicles (LSV), the carts are capable of traveling up to a maximum speed of 15 miles per hour.

When Frank Brown, the president of the company, visited his father in an upscale retirement development in Arizona, he noticed many residents used golf carts to get around and visit other residents in the neighborhood. After talking with his father, Frank discovered that their golf carts were capable of going 25 miles per hour.

Electro Carts has also received requests for golf carts that would travel 35 miles per hour and meet regulations for street use.  

  • Are Electro's current vehicles subject to NHTSA regulations? Why or why not?
  • If Electro manufactures carts capable of going 25 to 35 miles per hour, will they be subject to the NHTSA regulations? Why or why not?
  • Using the state of Arizona, Florida, or your own state, find a state or other local ordinance that specifically permits or prohibits the use of LSVs on public roads and explain the provisions of the regulation.
  • Discuss the pros and cons for allowing golf carts to use public roads.

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Business Law and Ethics: Electro cart manufactures electronic four-wheeled vehicles
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