Product Recall TNT FINAL.docx

Product Recall TNT FINAL.docx - Running head PRODUCT RECALL...

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Running head: PRODUCT RECALL 1 The Consumer Product Safety Commission: Product Recalls Sandra Michele Dorsey Legal Environment/BUS670/MOD1726A Professor Mark Cohen July 10, 2017
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PRODUCT RECALL 2 There are more than 2,500 product recalls that occur each year in the United States. A product recall is a demand to withdraw a product from the market due to design flaws, production defects, or new information material dangers (Berman, 1996). Recalls are an immediate call for consumers to create a sense of urgency to discontinue use of the products even when they do not appear to be defective. These defects create danger for consumers and put the manufacturers and retailers at risk of legal action. It takes the collaboration of many departments, people, and machines to get a product to the market (Vanden, 2010). This creates numerous opportunities for possible manufacturing mishaps to occur. Manufacturers often have established deadlines to get products to retailers which may create production short cuts and lead to defective products. Due to increased globalization of products, more complicated product designs, increased request for better products, and stricter governing by firms and agencies, recalls will become a common occurrence (Chen, Ganesan & Liu, 2009). In fact, the vast majority of manufacturers have plans in place for recalls with hopes of mitigating legal and financial penalties. Consumer Product Safety Commission (CPS) Recalls are highly regulated processes with legal and financial ramifications for the retailers and manufactures creating the products. In 1972, the United States CPSC was established to create to protect consumers. “CPSC is committed to protecting consumers and families from products that pose a fire, electrical, chemical or mechanical hazard” ( ). The CPSC has the power to set product standards and enforce civil penalties (Busch, 1976). The opponents of the CPSC believe that it does not move fast enough when recalling products. However, over the past 40 years, reductions in the death rate of children and consumer injuries associated with defective products is due to enforcement of regulations by the
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PRODUCT RECALL 3 CPSC. Businesses are not advocates of CPSC due to the adverse ways their rules and regulations can impact their organizations. Product recalls can create negative press for the companies creating consumer concerns about the company being negligent in their business practices.
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