FLAMING PHONE CASE

Samsung on September 15, issued a notice that due to technical issues in the lithium-ion battery
in the Galaxy A8+, these smart phones can overheat and catch fire, posing a serious burn hazard
to consumers. Samsung has received 92 reports of the batteries overheating, including 26
reports of burns and 55 reports of property damage, including fires in cars and a
garage. Samsung advised its consumers to immediately stop using and switch off their Galaxy
A8+ devices purchased before September 15, 2018. Samsung even initiated a recall programme
advising its consumers to contact the wireless carrier, retail outlets or Samsung.com where they
purchased their device from, to receive free of charge, a new Galaxy A8+ with a different
battery, a refund or a new replacement device.

Samsung was due to partner with another leading mobile brand Motorola in the next month to
launch a new model of phone in collaboration with each other in the medium range sector to
target consumers like no other brand could, since Samsung had the best and latest software
applications to offer in this range while Motorola had the best hardware along with longest
lasting battery in the market in this segment. But due to the reports, Motorola has serious
reservations about the collaboration since it cannot at any point put its brand name on stake.
Samsung has been looking forward to this collaboration eagerly since it needs better support
for its hardware. If this collaboration is successful, Samsung will be able to regain its lost glory
since Motorola is known for its tough design and battery. Hence, Samsung needs to retain its
customers and goodwill by working this drive of calling back A8+ handsets successfully
without any further negative publicity. Rather, they need famous gadget bloggers and reviewers
to come forward and appreciate the way Samsung handled this fiasco.

Rahul is a very successful and well known gadget blogger and news anchor with prime time
slot for a show with NDTV reviewing all latest gadgets including smart phones, speakers,
television sets etc. and is approached by various brands for collaboration and promotion of
their products. On September 7, 2018, he bought one of these phones from Flipkart for his
personal use and activated it immediately on getting the delivery. Rahul knew that he would
be travelling outside of the country for two weeks for a family holiday and wanted to use the
new phone upon return to India. Rahul returned on late September 21 evening and got the
update of the recent reports on Samsung phones but did not have time to return/change the
phone immediately since he had other urgent work piled up. He ignored the warning and started
using the phone because he needed one immediately. The next morning, on September 22,
Rahul grabbed the phone, went out to his SUV, and plugged the phone into the charger in the
car. He pulled over for some quick work at a nearby store. It was an extraordinarily hot day,
and Rahul left the phone charging in the car with the car running so that the air conditioning
would keep the car cool while Rahul ran his errand. Rahul could have not been gone for more
than 5 minutes from the car, but upon his return, there was a fire inside the locked vehicle.
Rahul called the fire department and it responded and put out the flames, but not before the
interior of the car was severely damaged. Rahul had the vehicle towed to the dealership which
assessed the cost of repair at Rs. 4,50,000.

Rahul was extremely angry and sent a legal notice to Samsung claiming damages. The damages
are the cost of repairing the car, cost of a new phone, cost of towing the car and compensation
for the accident and trauma caused. Both parties have agreed for a negotiation to avoid
proceeding to litigation.