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DANGEROUS DRIVING.
Term Paper ID:22367
Essay Subject:
Social & economic costs of bad auto & truck driving; case study of Domino Pizza suit for unsafe drivers. Speed, alcohol, insurance.... More...
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Paper Abstract:
Social & economic costs of bad auto & truck driving; case study of Domino Pizza suit for unsafe drivers. Speed, alcohol, insurance.
Paper Introduction:
Introduction
Operating an automobile in the United States is a relatively simple process: licenses are granted to teenagers (16 year-olds in some states; 18 year-olds in others) and no formal driver training education is required for the license. A simple written and driving test is required in most states, since state agencies issue their own licenses, but the process is similar throughout. In the United States, nearly any individual can obtain a license which permits them to operate one of the most dangerous items they will ever possess: an automobile. This research considers the social and commercial costs of poor and dangerous driving habits within the United States, and takes a particular look at one case where the financial and personal costs were severe (Domino's Pizza).
Danger
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Somestates have increased the speed limit to 65 miles per hour in rural areasin recent years, but there continues to be a strong case for maintaining alower maximum speed limit. Whileboth of these practices are illegal, budget cutbacks have resulted in ashortage of police officers. These samecomputer systems also keep track of where the customer has the pizzasdelivered, including directions and the fastest routes at a particular timeof day. Even lacking the institutionalized guarantee, therecontinues to be pressure among drivers to be as quick as possible incarrying out their tasks, and there continues to be internal pressure bystore managers and owners to do so. 22. Howard, T. Increasingly, truckers are also turning tooverloading their trucks in order to make the most of each trip. 22). Alcohol slows down the body's reaction time, and impairs thecoordination of the driver, with the result that drivers who mightotherwise be perfectly capable of reacting to emergency situations arerendered unable to do so under the influence of alcohol. However, younger drivers find access to alcohol which, combined withtheir relative inexperience in operating a motor vehicle, can lead todisastrous results. But dangerous driving habits do not stop with physical impairment dueto alcohol or lack of sleep. 22). The costs are seen most directly by insurance companies and theirconsumers, although individual companies, such as Domino's have also seenthe financial costs of dangerous driving. 1, 97. This has led to an increasein the number and variety of drugs that are taken to help truckers stayawake on their long trips. These may include eating or drinking in the vehicle, orputting on makeup, or shaving, or reading a newspaper or book. 31). 28-29. Both of these situations cancause the driver to have difficulty in operating the vehicle, andcontribute to loss of life and personal injury. Specialist companies, such as those who focus onautomobile and personal insurance, and those that market directly toconsumers, are likely to do best in the coming years, while other companiesare likely to be unable to compete in an environment which is growingincreasingly more restrictive (Nasar, 1989, p. Excessive speed is the leading cause of traffic violations in theUnited States, and is also a major cause of accidents. 8 or .1 percent is required to be considered legally drunk in moststates). Domino's tosses delivery pledge, faceschallenges. This research considers the socialand commercial costs of poor and dangerous driving habits within the UnitedStates, and takes a particular look at one case where the financial andpersonal costs were severe (Domino's Pizza). Civil lawsuits come about as those involved in accidents withuninsured drivers seek to recover losses. 17). Within the United States, federal regulations require thattruckers may only drive for 1 hours at a time and for no more than 6 hours per week ("Kings and Lizards," 1993, p. Domino's finally does the right thing.Restaurant Hospitality, p. The company, which has more than 53 stores throughout the UnitedStates, promised a piping hot pizza in 3 minutes or less from the time theorder was placed. If one pizza store is able to establish an ability todelivery pizzas quickly, it is likely to do better than a competing storein the same area. Insurance companies are understandably reluctant to insure drivers whohave poor histories of accidents, citations by authorities, or drunkdriving convictions. Kings and lizards. Truckers Truckers, particularly in the United States, have developed their ownsubculture. Conclusion Dangerous driving habits have a direct social and financial impact onthe rest of the community. Such computer systems are not inexpensive, but they help pizzarestaurants maintain an edge over the competition (Morton, 1994, p. The legal drinking age inthe United States varies from state to state (as does the legal drivingage) and the two ages do not always coincide. While not directlyattributable to dangerous driving, the increase in claims and the increasein the number of uninsured drivers has certainly contributed to theconsolidation of companies within the insurance industry and the highlyregulated environment in which the remaining companies operate. Restaurant Business, pp. The Domino's case dramatically illustrates how a company can encouragedangerous driving and not change its stance until there is a compellingfinancial reason to do so. Regardless of their employer, alltruckers are under pressure to move the most amount of freight in the leastamount of time. Yet even removing the corporate pressureto deliver pizzas quickly does not remove the intense competition amongindividual stores. These effects are felt at every level, from thenational government to the local neighborhood. Insurance Costs The end result of dangerous driving habits is that insurance companieshave increased their rates. Consumers areinterested not only in the quality of the pizza, but also in the conditionin which it arrives at their homes. However, agents who sold policies for this agency receivedmuch higher commissions than if they sold policies for private companies.The result is that New Jersey residents now are insured by the state at amuch higher rate than other states (one-half the drivers in New Jerseycarried this type of insurance in 1989, it is estimated), and privateinsurance companies saw their revenues fall off dramatically. There are other problems that drivers face, however, and these includethe problem of driving while taking medication, which can have an effectsimilar to alcohol, or driving while sleepy. This statement did not have the effect that Domino's anticipated.Critics charged that police officers have lights and sirens to warn othersthat they are driving in an unsafe manner, and they presumably areenforcing the law at the point that their driving would be consideredunsafe. However, this leads toa different problem, which is civil lawsuits as well as an increase ininsurance rates among the remaining drivers. Dangerous Driving Habits Defining dangerous driving habits is not an easy task. The corporate office at Domino's removed the pressure when, in 1994,Domino's lost a lawsuit of $79 million. This has led to an increase in the number of driverswho are operating their vehicles without insurance. Nation's Restaurant News, pp. Even small restaurants have installed computersystems which enable pizza stores to track what types of pizzas (size andingredients) a particular customer has ordered in the past. Introduction Operating an automobile in the United States is a relatively simpleprocess: licenses are granted to teenagers (16 year-olds in some states;18 year-olds in others) and no formal driver training education is requiredfor the license. This is not to say that drunk driving is limited to young drivers.Older and legal drinkers also operate automobiles while legally drunk(Americans consider . Other cutbacks mean that weigh stations, setup to check that trucks are not overloaded, have been closed or severelycut back on the hours which they operate. In this way, pizza stores haveinvested in special packaging to keep the pizzas warm while en route, andhave begun to emphasize the speediness of their delivery over theircompetition. 99-1 4. Competition is a key force in the pizza industry. Some of these restaurants offereat-in environments, while others have a system whereby customers can placetheir order ahead of time and then pick it up at their convenience.However, one of the most popular ways that Americans consume pizza is tohave it delivered to their homes and workplaces. New Jersey sought to avoid this situation by implementing the JointUnderwriters Association, which is a state-run agency offering insurance toany driver. (1994, August 1 ). Pizza is a popular food item, and thereare many pizza restaurants in most cities. However, it is notunusual for drivers to drive 8 or even 1 hours per week, cleverlyconcealing the information on their trip logs. This causes the court system tobecome overburdened, and takes away from days that the individuals involvedwould otherwise be spending at work. (1994, January 3). The competition in this market can be measured by the technology thatsupports the industry. This placed some pressure on the kitchen staff (andDomino's rapidly gained a reputation for only average pizzas), but an evengreater pressure was placed on the drivers. Their loss to the community, to their families and to theiremployers cannot be measured solely in financial terms, but must beconsidered in light of the qualitative contributions that they would havemade to society. Despite state company policy againstdoing so, some former Domino's drivers alleged that they were fired becausethey did not consistently meet the deadlines (DeLuca, 1994, p. Most states today require minimum coverage on any car, and insurancecompanies have been aggressive in their campaigns to fight reform effortsin their industry. Not only do driversrun the risk of having a car veer out of control when they are driving inexcess of a safe speed, there is also the possibility that they willcontribute to a greater accident with more significant injuries both topersons and property if the vehicle is traveling too fast. Hard road ahead for auto insurers.Fortune, pp. But there are many moretruckers on the road than police officers, and truckers have gained areputation for driving as fast as they can on the open road in order tomeet their schedules. Domino's drivers, on the other hand, are driving in an unsafemanner in order to make sure that a pizza is received hot. Critics of the company further charge that if the company had notreceived such a large judgment against it, it would not have been compelledto drop the 3 -minute guarantee. Some truckers are employed by large freight forwardingcompanies; others work independently. During the oilcrisis of the 197 s, the United States imposed a federal maximum speed lawof 55 miles per hour; this was designed to take advantage of the greaterfuel efficiency at which most cars operate at that speed. Thus the habitsof rural drivers are not likely to be considered dangerous in their typicaldriving area, but would be considered quite dangerous in an urban setting.Because the United States is not a homogenous nation with regard to wheredriving occurs, and because (particularly in the Western states) thedifference between urban and rural areas can be quite small, it is possiblethat drivers will encounter a variety of different situations within ashort period of time, or even within the same trip. One company, Domino's, built its market niche on the speed ofits delivery. (1989, November 18). Domino's had a policy ofinspecting delivery cars once each month, and of firing them for getting aspeeding ticket, but there is some question as to whether these policieswere actively enforced (DeLuca, 1994, p. 97). Some drivers complained that they were encouraged to make asmany as three deliveries in an hour. As with truckers, justbecause a speeding ticket is not issued, that doesn't mean that the driverwas not speeding. 5 percent alcohol blood level to be impaired, while. In the United States, nearly any individual can obtaina license which permits them to operate one of the most dangerous itemsthey will ever possess: an automobile. Delivery isn't easy on the informationsuperhighway. It is not unusual, for a drunkdriver to enter a one-way road headed in the wrong direction. Recent calls toremove the speed law have been met with criticism that allowing drivers togo faster will result in increased property and personal injury. Domino's Pizza The pizza delivery market is one of the most competitive and lucrativemarkets in the American market. Today's emphasis on speedand convenience may well be at the root of many dangerous driving habits.Drivers today are in a hurry to get to their destination, or they want thefastest pizza delivered to their door without incurring the inconvenienceof picking it up elsewhere. Domino's drivers complained that if they did not beat the 3 -minutedeadline, they were relegated to less affluent neighborhoods where the tipswere less. Becausemost driving is done on a regular basis, traveling the same routes, driverscan become complacent about following basic safety rules. 1 1). For example, the legaldriving age is 16 years old in California, but the legal drinking age is21. Withoutreshaping society's expectations with regard to speed, dangerous drivinghabits are not only likely to continue, but likely to increase. (1989, May 8). 31. Some drivers, particularly those who commuteon a regular basis, develop habits which impair their ability to operate anautomobile safely. In 1989,each New Jersey driver paid an additional $222 surcharge on his vehicle tosupport the system ("Driving Costs," 1989, p. When a driver'sattention is not entirely on the situation at hand, however, there is anincreased likelihood of accidents, or of making an accident worse. One lawsuit is not going to cause all drivers to become safer drivers,but the emphasis on speed at any cost must be removed from the society ifthe long-term costs of driving, and the privilege of driving in a safeenvironment, are to be to levels that are acceptable to all. Louis woman wasgiven $78 million in punitive damages and $74 , in compensatory damagesfor injuries to the head and back she suffered as a result of an accidentin 1989 when an 18-year-old Domino's driver ran a red light and slammedinto her car. Another leading cause of accidents and one of the most publicizeddangerous driving habits is the tendency of some drivers to operate theirvehicles while under the influence of alcohol. Morton, A. 22). 29). Insurance rates go up as companiesrecognize that they will have to pay for those accidents involvinguninsured motorists, and those with good driving records, who are able toget insurance, find that their rates are increased despite their records. At the same time,the most rudimentary physical requirements of operating a vehicle are alsoimpaired, which makes the drunk driver a menace to others on the road evenwhen not faced with an emergency situation. Economist, pp. 19-2 . A simple written and driving test is required in moststates, since state agencies issue their own licenses, but the process issimilar throughout. In the case, a St. (1994, February). This affects businesses (including those whomove their goods by truck) as well as individuals. (1993, January 8). Driving costs. References DeLuca, M. Economist, p. There are other problems that truckers face in that while they areunder pressure to move their freight as quickly as possible, and tomaintain loads that are not overweight, they are to operate within theguidelines of the state and federal authorities. In New Jersey in 1989,the average driver paid more than $1 per year to insure his automobile.In California, public outcry against insurance rates led to the passage ofa law which sought to control insurance rates, but which has beenineffectually implemented. Although Domino's faced tremendous publicrelations challenges even before the accident that led to the largesettlement, it continued to maintain that its safety program was sufficientenough to see the company through, and that its drivers were not unsafe.In fact, Domino's chairman and founder once stated that "you have to have abetter driving record to deliver for Domino's than you do to become apolice officer" (DeLuca, 1994, p. After the judgment was handed down, the company dropped its3 -minute guarantee, although the new rules applied only the 5 storesactually owned by the corporation and not to franchisees (althoughfranchisees intend to abide by the new rules) (Howard, 1994, p. Nasar, S. However, nonfinancial costs maywell have a heavier toll on the community since individuals are injured andkilled in accidents which can be directly attributable to dangerousdriving. These conditions increase theincentive among truckers to violate both regulations. Habits whichmay be considered dangerous in one area, such as traveling at 8 miles perhour, would not be considered dangerous in another area.
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