Please read this short article first, Question at bottom - Volkswagen: The scandal explained - BBC News

It's been dubbed the "diesel dupe". In September, the Environmental Protection Agency (EPA) found that many VW cars being sold in America had a "defeat device" - or software - in diesel engines that could detect when they were being tested, changing the performance accordingly to improve results. The German car giant has since admitted cheating emissions tests in the US.

VW has had a major push to sell diesel cars in the US, backed by a huge marketing campaign trumpeting its cars' low emissions. The EPA's findings cover 482,000 cars in the US only, including the VW-manufactured Audi A3, and the VW models Jetta, Beetle, Golf and Passat. But VW has admitted that about 11 million cars worldwide, including eight million in Europe, are fitted with the so-called "defeat device".

The company has also been accused by the EPA of modifying software on the 3 litre diesel engines fitted to some Porsche and Audi as well as VW models. VW has denied the claims, which affect at least 10,000 vehicles.

In November, VW said it had found "irregularities" in tests to measure carbon dioxide emissions levels that could affect about 800,000 cars in Europe - including petrol vehicles. However, in December it said that following investigations, it had established that this only affected about 36,000 of the cars it produces each year.

This 'defeat device' sounds like a sophisticated piece of kit.

Full details of how it worked are sketchy, although the EPA has said that the engines had computer software that could sense test scenarios by monitoring speed, engine operation, air pressure and even the position of the steering wheel.

When the cars were operating under controlled laboratory conditions - which typically involve putting them on a stationary test rig - the device appears to have put the vehicle into a sort of safety mode in which the engine ran below normal power and performance. Once on the road, the engines switched out of this test mode.

The result? The engines emitted nitrogen oxide pollutants up to 40 times above what is allowed in the US.

What has been VW's response?

"We've totally screwed up," said VW America boss Michael Horn, while the group's chief executive at the time, Martin Winterkorn, said his company had "broken the trust of our customers and the public". Mr Winterkorn resigned as a direct result of the scandal and was replaced by Matthias Mueller, the former boss of Porsche.

"My most urgent task is to win back trust for the Volkswagen Group - by leaving no stone unturned," Mr Mueller said on taking up his new post.

VW has also launched an internal inquiry.

With VW recalling millions of cars worldwide from early next year, it has set aside 6.7bn (4.8bn) to cover costs. That resulted in the company posting its first quarterly loss for 15 years of 2.5bn in late October.

But that's unlikely to be the end of the financial impact. The EPA has the power to fine a company up to $37,500 for each vehicle that breaches standards - a maximum fine of about $18bn.

The costs of possible legal action by car owners and shareholders "cannot be estimated at the current time", VW added.

Shortly after the scandal broke (October 2016) VW sent customers, who were impacted by the scandal, a goodwill package*. The package included:

$500 prepaid Visa card that can be used anywhere Visa debit cards are accepted,

a $500 card for use at Volkswagen of America dealerships,

24-hour roadside assistance for 3 years.

Acceptance of the goodwill package did not impact the customers right to sue VW.

* Acceptance of the package did not impact the customers right to sue VW for the scandal.

Imagine it is 2014, you and your spouse go to a VW dealer (in the US) and explain that you are looking for a family car that is good for the environment. As you talk with the sales person you explain that you have a young daughter with asthma and you want a car that will not contribute to the smog in your community, which you have learned causes your daughters asthma to get worse.

The salesman tells you that you should get the 2014 Passat DTI. You follow his recommendation and purchase the car. In 2015, your daughters asthma condition is worsening and then you learn about the VW scandal.

Question: Pick one type of tort could you use to try and recover from VW (assuming there were no class actions, etc. preventing you from filing your own case)?

Tell me the tort, tell me the requirements for the tort, tell me how you would prove your case.

Would your purchase of the Passat fall under common law contracts or under the UCC? Why?

If you believe it falls under the UCC (hint, hint), what if any warranties may have been breached?

Think back to the beginning of the class and the WPH framework. If you were a high-level executive at VW and you were trying to decide what to do, what approach would you take to make an ethical decision? (You can apply the WPH framework to before the scandal occurred or after. Please tell me which one you picked.)

Provide a critique of Volkswagens response in the aftermath of the scandal.

Do you think that consumer opinion of Volkswagen was damages by this scandal?