Ah, so you expect considerable expertise from consumers.
How much? Does everyone have to know everything?
Some SUVs have stiffer springs which makes them more prone
to roll-over when they hit a bump during over-sharp turns.
Some cars have gas-tanks extending too far aft and more likely
to be punctured during a collision. Some tires are perfectly
adequate under normal conditions, but sometimes blowout under
extreme stress because they are missing belts.
It's a matter of expectations. I expect that my SUV will not roll
over under normal driving conditions, but I am fully aware that if I
push it to hard that it won't be able to handle it. Similarly I
expect my coffee to be hot, but fully expect that if I dump the thing
in my lap it will continue to be hot and burn me.
Or closer to home -- some motherboards fail prematurely due
to low-quality capacitors leaking out.
If my motherboard came with a 3 year warranty I would expect that it
would last for those 3 years without failing. However I do recognize
that after a certain period of time it WILL fail for one reason or
another (be it capacitors, blow diodes, fried resistors or severe
physical damage by my being frustrated with a slow, outdated
computer). If I buy a cheap-ass motherboard that only came with a 1
year warranty and it dies 2 years down the road, I have no one to
blame but myself.
Are all of these things "caveat emptor"? How would you
discourage manufacturers from cutting corners? Is reputation
enough? Enough in view of investor short-termism? Do you
want a market so paranoid that reputation is everything
and hence closed to new entrants? (Europe?)
There are simple expectations that people should have before
purchasing anything. Anyone and everyone who buys coffee should be
well aware that it's hot, and even most toddlers know that hot things
can burn. Even if McD's coffee had been only 150F or so it could
still very easily burn someone if spilled in their lap.
I don't much like punitive damages. But there is lots of slop
in the legal system, particularly people who suffer in silence
or get soaked by lawyers fees (IANAL) or silent because.
The threat of punative damages are a counter-weight. How would
you keep the corps mindful of the true loss they can cause in
the face of a clear duty to maximize profit for shareholders?
This is one of the real problems with the "corporate veil", it removes
responsibility. However I don't think that the way to fight this is
by removing responsibility from consumers as well to the extent that
no one is properly responsible for anything. That's what we're seeing
in this case. McD's hiding behind the corporate veil so that no one
will be responsible for their coffee being hotter than other companies
coffee, and the woman is hiding behind her apparent right to ignorance
that hot coffee can burn.
In the end, all the money just ends up getting shuffled around into
lawyers pockets and neither the corporation or the consumers benefit.