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Since Bic lighters were first manufactured in 1972, hundreds of people have been injured by lighters that explode into flames, often when they are not even in use. The Bic Corporation has stopped most lawsuits by offering huge settlements to those people injured by the lighters. One such settlement topped $3M. In these settlements, Bic inserted a secrecy clause preventing the injured party from revealing to the public any part of the incident.
a. Should Bic continue to market lighters knowing of their tendency to explode?
b. Should the corporation settle these claims out of court?
c. Should the secrecy clause be included in each settlement?
d. Are the injured parties acting ethically when they promise to keep quiet knowing what can happen to hundreds of unsuspecting consumers?
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