We live in a society that is both risk-averse and litigation-mad. Not surprisingly, these two things go hand in hand.
After a handful of crashes involving Toyota Motor Corp. automobiles, said to be the result of sudden acceleration, the company undertook a huge recall, while being sued by both crash victims and the government. It ultimately paid about $2.3 billion to settle the cases. Mattel Inc. recalled 19 million toys after discovering that one of its Chinese manufacturers had used lead paint -- even though the lead level was minimal, and no one could point to a single child who had been harmed. It was nonetheless hit with lawsuits, which it settled two years later. And of course, McDonald’s Corp. was once famously sued when a woman burned herself after spilling a cup of hot coffee on her lap. Although the lawsuit was widely ridiculed, most disposable coffee cups now come with warnings.
