...Defective Product: Recall or Repair November 13, 2014 Within the past several months, automobile manufacturers and baby care product industries have been recalling defective products to save the life of their consumers. Consumer safety is regulated by the Consumer Product Safety Commission (CPSC), an agency that strives to “protect the public from hazardous consumer products” this includes children and families (USCPSC, 2013, p. i). In unit one the discussion related to a defective memory chip; in unit two we deal with yet another defective product, in which a lead engineer saw the need to correctly deal with a defective fuel-line component. Product safety standards have been the number one concern for all businesses from automobile to toy manufacturers. In this scenario, Minnie discovered the defective fuel-line component; unfortunately, there are some risks associated with the company continuing to sale the product even if the product will cause little to no harm to consumers. In addition, the company will face some risks if management decides to recall the product. It is the responsibility of the management team of the manufacturer to recall or notify everyone involved about the defective product - this includes consumers. Soon as Minnie notified the management that the fuel line may potentially cause harm to consumers, swift action needed to be taken to prevent any further harm and save the company’s reputation and brand name. Therefore, if the company decides...
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...Kudler Fine Foods Legal Analysis Obtaining timely and accurate legal advice is a critical necessity in the modern corporate world and like all industries legal professionals are area specialists. Today’s lawyers may work exclusively with labor issues, negotiations, taxes, contracts, litigation or general corporate law, to mention a few. Retaining one skilled attorney able to navigate the entire scope of Kudler’s needs is unlikely and therefore Kudler will need to retain a corporate law firm to represent all of its interests. According to Kudler Fine Foods (2011) website, Kudler currently uses Anne Shousha, Kathy Kudler’s sister-in-law, as its legal counsel. Anne is reportedly a successful tax attorney employed by an accounting firm in San Diego, California (Legal Overview). Additionally, Kudler’s contact with Anne is screened by Kathy and conducted either by phone, at family events or on the rare occasion in a face-to-face meeting. Historically, Anne has not billed Kudler for the telephonic or casual consultations but does bill at $100.00 per hour for formal meetings. At this time, Kudler’s policy regarding internal legal issues is one in which customer or employee injury’s are reported by the Store Manager to Kathy and she then notifies Anne. Store Managers are free to identify potential legal concerns and suggest them to Kathy but the ultimate decision to elevate to Anne rests with Kathy. According to Kudler Fine Foods (2011) website, Kudler “has had only a few customer...
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...the most expensive. Consumer Product Safety Commission (CPSC) is charged with protecting the public from unreasonable risks of injury or death associated with the use of the thousands of consumer products under the agency's jurisdiction. Deaths, injuries, and property damage from consumer product incidents cost the nation more than $900 billion annually. In this essay a product will identified that has been subject to recall by using the Consumer Product Safety Division website www.cpsc.gov, determine whether if the product had not been recalled and had caused harm to a consumer, the manufacturer would be liable in negligence, and identify and discuss a relevant consumer protection statute identified under “Consumer Protection” in conjunction with the product recall was previously identified. Jeep Liberty Strollers were recalled on June 19, 2013 under recall number 13-221. Kolcraft, the manufacturer, and CPSC have received 39 reports of inner tube ruptures causing the wheel rim to fracture and fly off as a projectile. “Of these, 18 included reports of injury, with 14 occurring while filling the tire with air by an adult caregiver. Two children received lacerations to their chin or leg while standing near the stroller and 16 adults received abrasions, contusions and/or lacerations to their arms, legs, stomach, or head/face. Two of the reports included property damage (CPSC, 2013).” The remedy is for the consumers to immediately stop using the product and contact the company to...
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...Herrod v. Metal Power Products Facts This case dealt with Plaintiffs who sued a semi-trailer manufacturer for a product defect. On January 30, 2005, in Davis County, Utah, a rear wheel came off a semi-trailer and hit another vehicle causing injury and the death of one passenger. Plaintiffs sued for personal injury and wrongful death based on negligence, strict liability, and failure to warn. Plaintiffs sued multiple Defendants, but their claims against Defendant, Timpte, Inc., were based on strict liability. The trailer at issue was manufactured by Timpte and was built according to specifications provided by Northwest Transport Service, Inc. The specifications included use of the Pro-Torq wheel retention system. The court...
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...Tom’s Tractor Purpose: The purpose of this memorandum is to reflect the results of our due diligence on researching authorities related to the acquisitions made by Tom’s Tractor Supply Co. and Mills Machines, Inc.’s plans to change their policy of accounting for product recalls. The context of our research associated with these transactions, one undertaken and one planned, are twofold: International standards under IFRS and domestic U.S. standards under U.S. GAAP. Relevant facts: * Tom agrees to purchase Rural Life Supply Co. for $150 million in exchange for: * Assets of Rural Life Supply Co. that include: * Exclusive supplier contract of farming equipment with Farming Depot and non-contractual customer relationship with Farming Depot for routine purchases of power tools. * Exclusive supplier contract of power tools with Cattle Caller and non-exclusive contract associated with the customer relationship with Cattle Caller for the backlog of orders for farming power equipment. * Tom agrees to purchase Tractor Heaven for $90 million in exchange for: * Assets of Tractor Heaven that include: * Customer lists of Tractor Heaven, half of which contain confidentiality agreements. * Non-contractual customer relationship with Bonanza Farming. Issue: What is the appropriate GAAP and IFRS accounting treatment for Tom’s Tractor Supply acquisitions of Rural Life Supply Co. and Tractor Heaven? Analysis: Deloitte guidance ...
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...http://strtutorials.com/BUS-309-WK-6-Quiz-5-Chapter-6-All-Possible-Questions-BUS3096.htm BUS 309 WK 6 Quiz 5 Chapter 6 - All Possible Questions 1. In 2009 the FDA was empowered to regulate 1. Alcohol 2. Candy 3. Pornography 4. Cigarettes 1. Every year, consumer products electrocute approximately 1. 100 people a year 2. 200 people a year 3. 400 people a year 4. 600 people a year 1. The court case that established consumers’ rights to sue the manufacturer of products was 1. Roe v. Wade 2. Griggs v. Palmer 3. MacPherson v. Buick Motor Car 4. Brown v. Board 1. In 1972 Congress passed the 1. Consumer Produce Recall Act 2. Consumer Product Safety Act 3. Consumer Recall Liability Act 4. Consumer Product Liability Act 1. Had air bags been standard equipment in 1974, how many deaths might have been prevented? 1. 70,000 2. 80,000 3. 90,000 4. 100,000 1. When did a government agency begin testing candy for its potential to choke children? 1. 1987 2. 1997 3. 2000 4. 2003 1. Iacocca used to say “Safety doesn’t…” 1. Hurt 2. Sell 3. Corrupt 4. Produce 2. Cigarette fires are responsible for how many serious injuries a year? 1. 2000 2. 4000 3. 6000 4. 7000 1. The claim that a product is fit for its ordinary use is 1. An implied warranty 2. An explicit warranty 3. A condition of sale 4. A consumer risk 1. When manufacturers and retailers agree to set prices, this is 1. Horizontal price fixing 2. Vertical price fixing 3. Backwards price...
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...http://strtutorials.com/BUS-309-WK-6-Quiz-5-Chapter-6-All-Possible-Questions-BUS3096.htm BUS 309 WK 6 Quiz 5 Chapter 6 - All Possible Questions 1. In 2009 the FDA was empowered to regulate 1. Alcohol 2. Candy 3. Pornography 4. Cigarettes 1. Every year, consumer products electrocute approximately 1. 100 people a year 2. 200 people a year 3. 400 people a year 4. 600 people a year 1. The court case that established consumers’ rights to sue the manufacturer of products was 1. Roe v. Wade 2. Griggs v. Palmer 3. MacPherson v. Buick Motor Car 4. Brown v. Board 1. In 1972 Congress passed the 1. Consumer Produce Recall Act 2. Consumer Product Safety Act 3. Consumer Recall Liability Act 4. Consumer Product Liability Act 1. Had air bags been standard equipment in 1974, how many deaths might have been prevented? 1. 70,000 2. 80,000 3. 90,000 4. 100,000 1. When did a government agency begin testing candy for its potential to choke children? 1. 1987 2. 1997 3. 2000 4. 2003 1. Iacocca used to say “Safety doesn’t…” 1. Hurt 2. Sell 3. Corrupt 4. Produce 2. Cigarette fires are responsible for how many serious injuries a year? 1. 2000 2. 4000 3. 6000 4. 7000 1. The claim that a product is fit for its ordinary use is 1. An implied warranty 2. An explicit warranty 3. A condition of sale 4. A consumer risk 1. When manufacturers and retailers agree to set prices, this is 1. Horizontal price fixing 2. Vertical price fixing 3. Backwards price...
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...Products Liability Lakesha Hutto Strayer University Patrick Caver, esq. LEG500: Law,Ethics & Corp. Governance March 17, 2013, 2013 Abstract There are has been many lawsuits filed against makers of cribs and other infant products in recent years. Many recalls have been made on the 4 in 1crib since 1998 until present time and many deaths of infants have occurred as well. The following discussion will share the stories and lawsuits filed against companies such as Graco Children’s Products Inc., Simplicity and the outcome of the lawsuits and what things were added to enhance the safety and quality of the products. Simplicity Incorporated is one of the largest makers of baby products worldwide. The company produces and sells items such as the Aspen 3 in 1, Nursery in a Box and Crib in Changer Combo. Simplicity cribs also used the popular Graco logo on some of its bigger items such as the Ultra 4 in1, the Ultra 5 in 1 Whitney and the Trio. All of these items were recalled by because of several complaints and even some recorded deaths of infants. These items were sold in department stores and children’s stores and by mass merchandisers nationwide from January 1998 through May 2007 for between $100-$300 dollars and all items were made in China. The side of the crib that lowers can detach from the crib, creating a dangerous gap that can lead to the entrapment and suffocation of children. At the time that the reports...
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...Toyota Recall Lawsuit Assignment 1 Week 4 Tina Christensen LEG100 Natalie Stratis-Malak, Esq. Strayer University 29 July 2012 Toyota Recall Lawsuit Toyota Recall Summary of Initiation of Lawsuit For those who are not familiar with the lawsuit against Toyota, it is interesting because it involves what so many believed to be quality product failure. Four people died in California in October of 2009 due to stuck accelerator pedal on their Lexus vehicle which is a Toyota made product. The key to the initiation of this case was that it was a State Trooper and his family that had died as the cause of the acceleration pedal failure. One amazing thing about this fact, is that it took the loss of life of a police officer and his family for the Toyota company to recognize that there was a product failure problem. Although the NHTSA had apparently received many reports of this accelerator pedal problem happening, it is cited by Bearman Law as having been ignored although previously investigated. As the investigation unfolded, many injuries and fatalities were uncovered that were caused by this Toyota malfunction and the public was not notified. The solution was for owners to remove the floor mat and not replace it. (Bearman Law Firm, 2012) I personally was shocked when I read further into this case as I recalled that this happened to my mother a number of times in her Toyota Lexus while on the highway and merging with traffic and the pedal sticking. I thought...
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...Jurkowski Michael Wilding Webster University Firestone Case Study BACKGROUND In 1900 Harvey S. Firestone established The Firestone Tire and Rubber Company, the company started with 12 employees. They started out by supplying rubber tires for wagons and buggies. In the 1908 Henry Ford and Harvey Firestone formed a partnership with firestone supplying tires for the new model T this was a natural relationship because they had mutual friends. (Noggle and Palmer, 2005) Today Firestone is known as Bridgestone/Firestone after the two companies merged in 1990 for $2.6 billion. Today the company markets 8,000 different types and sizes of tires along with other products. Firestone has had a substantial history of scandals relating to tire safety In 1978 Firestone recalled 14.5 million tires—the largest tire recall at the time—after excess application of the adhesives binding the rubber and steel resulted in 500 tread separations and blowouts. The company was also fined $500,000 for concealing safety problems. ("e-businessethics.com") However in the late 90’s Firestone would be put into serious jeopardy and be threatened with going bankrupt. The Ford Motor Company was started by Henry Ford in 1903 in Dearborn, Michigan producing only a few cars a day. Ford was the first company to use assembly line production and has grown into one of the largest family run organizations in the world In 1999 Ford had a staff of 360,000 employees and revenues of more than $160 billion. ...
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...…………………………………………………..7 Argument…………………………………………………………………..7 Mr. Gonzalez should not be held negligent for leaving the matches on the sales table; they were set out of reach of children, in a position where he could see customers take them if he were to be standing behind the counter. …………………………7,8,9,10,11,12 THE RULING THAT MR. GONZALEZ SHOULD NOT BE HELD NEGLEGENT SHOULD STAND BECAUSE THERE WAS NO FORSEEABLE INJURY INVOLVED IN GIVING THE CUSTOMERS FREE MATCHES…………………………8,9,10 MR. GONZALEZ SHOULDN’T BE HELD NEGLEGENT FOR GIVING HIS CUSTOMERS FREE MATCHES BECAUSE IF THEY WERE DEFECTIVE, THERE SHOULD’VE BEEN A RECALL BUT SINCE THERE WAS NO KNOWN DEFECT, THE MATCHES CANNOT BE RECALLED……………………………………………..9, 10 The court should uphold the ruling due to the product not being defective in its design…..9,10,11,12 THE STATES PRODUCT LIABILITY STANDARDS ARE THAT THE PRODUCT NEEDS TO DISPLAY BOTH DEFECTIVE DESIGN AND UNREASONABLY DANGEROUS BECAUSE OF THE DEFECT………10, 12, 13 MR GONZALEZ DID NOT BREACH THE WARRANTY OF MERCHANTABILITY BY ALLOWING DEFECTIVE MATCHES GET INTO THE HANDS OF THE PUBLIC BECAUSE TO HIS KNOWLEDGE AND THE REST OF THE PUBLICS THE MATCHES WERE NOT DEFECTIVE………………………………11 Hellfire company was not negligent in...
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...arm for the financing of vehicles. Its Automotive Sector includes Ford North America, Ford South America, Ford Europe, Ford Asia Pacific Africa. In the U.S. Ford North America engages in the sale of Ford and Lincoln branded vehicles, designs, manufacturers, both develops and purchase of parts associated with these activities and is a seller of these parts for the repair of its vehicles. Ford Motor Credit includes a variety of vehicle related financing, leasing and insurance. With a total revenue of 136.26 billion in U.S. dollars, (1) Fortune Magazine ranks Ford as the 25th largest corporation in the world. Location Of Factor Internal Strengths Type Of Factor Favorable Unfavorable Weaknesses Strong Executive Management Did not take Government Bailout Money Production based on world platforms Stable UAW Relationship Reliance on Profits from North American Market Weak sales in Europe, South America and Asia Pacific High Debt to Equity Ratio Pension Fund Liabilities External Opportunities Threats New Products Emphasis Green Technologies Finance Group Profits Partnerships in China R and D Budget Declining Middle class Safety Recalls High Fuel Prices Strengths A.) Strong Executive Management William C. Ford Jr. is the executive chairman of the Ford Motor Company. The greatgrandson of the company's founder, Mr. Ford took over as chairman in 1999 and served five years as its chief executive. Made an early shift away from...
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...be aware of the legal risks involved in social media marketing. This research paper by using content analysis looks at social media marketing and legal risks involved in social media marketing. Index Terms—Social media, marketing, legal risks, regulations. I. INTRODUCTION Social media marketing is a phenomenon where businesses are seeking new ways to create value. The introduction of social media considerably changes the marketing activities and consumers‘ behaviours. With the introduction of various technologies associated with social media the businesses and consumers participate in marketing activities easily without cost. Though social media is relatively a new media, its popularity is increasing rapidly across the world. Social media is used to engage with consumers, promote the business products and build business brands. Social media is also used as online word-of-mouth marketing to create buzz marketing effect of trust and reliability on products and brand. In the process, the businesses are building customer...
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...Products liability is a broad legal category covering everything from exploding gas tanks to flammable baby clothes to lead paint toys, to poisoned toothpaste and dog food. Legal risk for defective products can attach to manufacturers, assemblers, wholesalers, and retail distributors, depending on where in the chain of production and distribution a problem occurred that led to a consumer being harmed. Liability varies greatly by state and there is no federal or uniform law governing products liability. International standards also vary greatly. Legal claims for damages from defective products were originally based primarily on theories of negligence or breach of warranty. Increasingly, however, successful claims are made on the basis of strict liability. This means that liability is increasing. Where a strict liability theory is used, the injured consumer does not need to demonstrate that the manufacturer or some other person was negligent or that the product was unfit for the purpose for which it was sold. All the injured consumer in such cases needs to prove is that he or she was injured by the product. The seminal case is Greenman v. Yuba Power Products, Inc., 59 Cal.2d 57, 377 P.2d 897, 27 Cal.Rptr. 697 (1963), in which the Court stated that the 'purpose of such liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers that put such products on the market rather than by the injured persons who are powerless to protect...
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...portfolio to the business management by developing long term plans. And the middle is the decision-making hierarchy at business-level that translates the statement’s direction and generates corporate-level strategies for business units or SBUs. And the bottom hierarchy is functional-level that develops short term strategies and annual objectives in different areas of organisation. (David, 2003) II. ORGANIZATION & BUSINESS SEGMENTS Company Profile Johnson & Johnson- A most comprehensive health-care firms in the world and most diversified. J&J manufactures health care products for consumer & personal care, pharmaceutical, medical devices and diagnostics markets. It is operating its firms in 57 countries and nearly 200 companies around the world. J&J generates nearly half of its revenues from outside US; through its operating networks and marketing organizations that sells products in 175 countries. (Web 1) Key Facts- Johnson & Johnson Incorporated | 1887, Public Company | Employees | 114,000 | Sales | US $63.7 billion | Net earnings | US $12.9 billion | Stock Exchanges | New York Toronto | Operating locations | 57 Countries | Ticker Symbol | JNJ | Mission- To improve the quality of life for, people at everywhere. Vision- Bringing science to the art of healthy living life. The mission and vision statement shows that J&J gives importance on...
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