Legal Business Issues: Product Changes and Issues
Not what you're looking for?
Scenario: Your company makes baby seats for cars and RVs. Your main product was designed some time ago, and new and better engineering data are now available, but your product has a good record with very few quality problems. Even in most crashes, the seats perform well. Still, the new information would allow you to upgrade the product significantly (about a 7% improvement). However, changing the manufacturing process would be a significant cost, which you are unlikely to recover because competing products are already cheaper than yours. You have a legal fiduciary responsibility to your company to maximize your profit. What should you do?
a) Do not make the improvements, because the buyer assumes the risk. Your product is already safe and has a positive rating from the consumer reporting agencies. The change would cost salary increases for your manufacturing personnel.
b) Make the data public information and put pressure on your competitors to also improve their products, pushing up their costs as well.
c) Recognize that your company has an absolute duty to make your product as safe as possible and institute the change. Freeze employee wages to pay for the improvements.
d) Change your advertising program from "The Safest Baby Seat That Can Be Made" to "One of the Safest Baby Seats Made," avoiding issues surrounding implied and express warranties.
e) Attach a warranty sticker to the underside of the seat pad where few will see it, stating that the product is reasonably safe but is not guaranteed to be completely safe.
Purchase this Solution
Solution Summary
This solution provides the correct answer and complete explanation to the legal issues multiple choice question listed.
Solution Preview
d) Change your advertising program from "The Safest Baby Seat That Can Be Made" to "One of the Safest Baby Seats Made," avoiding issues surrounding implied and express warranties.
This choice would be the best choice as your answer. There are issues with the other choices. To ...
Purchase this Solution
Free BrainMass Quizzes
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.