Flaming Phones Phone and Build has been manufacturing Flaming Fast brand mobile phones in Johannesburg, South Africa. These phones are sold locally in South Africa and in North America and Europe. The Flaming Fast phones went on the market six months ago and are selling out in the United States as well as in Europe and South Africa. Unfortunately, consumers have reported that some Flaming Fast phones that were shipped to the United States have overheated and ignited. In a few cases, the phones have burned users and damaged property. In order to address these issues, you will need background information on Cross-Cultural Ethical Business Decision Making, Tort Damages, and Negligence and Product Liability. Belinda has asked you to write a memo with recommendations for how Phone and Build should handle this situation. As you prepare to make these recommendations by considering each of the following questions, take notes and create an outline for your memo:
• Given what is happening with Phone and Build's new phones, list the types of claims that the US customers could file in court and the arguments they might make for each element of their cause of action. What types of damages could be awarded under any of the causes of action listed in response to the previous question?
• What defenses might Phone and Build have for each claim? How likely is it that Phone and Build will win each claim? In the next step, you will write your memo.