Other than Bob, I think these are all pretty good answers!
You obviously have a lot of different options, but your family needs to handle the situation according to what their gut instinct tells them. Personally, I would stay away from the whole lawsuit mentality unless someone in the family was really hurt.
Do a little research and detective work and maybe you can assess the combined impact speed and then check to find out at what speed the airbags should deploy. Toyota makes some of the safest cars in the industry. If it was a GM or Ford I would be highly skeptical:).