Bus 670 Final Paper

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  • Topic: Consumer Product Safety Commission, Lead paint, Recall election
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Product Recalls
Alexander Rodgers
BUS 670 Legal Environment (NAF1215B)
Kim Stock-Foster
May 21, 2009 made up so that it can be seen things can go on here at any point and time...

Product Recalls
In order for a corporation to be successful it should produce products that are effective and reliable. To create a product that is high quality and a low price is the idealistic procedure that any business should operate on. High profits for corporations do not always develop as planned. Problems find there way into the market for several reasons. There can be several reasons why problems find their way into the market. When products have a defect may hurt a consumer products get recalled. A product is supposed to be recalled when the company finds out it is dangerous to the consumer because of a defect, or has killed or injured from the defect, or does not met government set requirements (May, 2009). Companies, when these problems arise, have to decide to recall the item in question or to allow it to stay in the market. Product recalls would continue without companies being held to ethical standards, thus encouraging companies to ignore when they build unsafe items that could harm or kill innocent people possibly. Product Recalls

When a consumer or manufacturer finds a product with a defect that has or may cause injury to others using or consuming a product a product recall occurs. Product recalls are not limited to individual industries. In almost all industries, from food to automobiles, recalls have happened. When product recalls usually occur it ends in the manufacturer usually giving back the consumer their money or replacing the product with no additional charges (Mays, 2009). There are organizations set up that closely monitor organizations. Monitoring organizations give the consumer the protection and satisfaction from products that are harmful.

There are businesses set up to to take their time testing automobiles and consumer products. The government body set up to closely keep a close on products brought into the public marketplace is the Consumer Product Safety Commission (CPSC). The CPSC has the option to test products on their own, or conduct on when a compliant is filed to carry out an investigation (Mays, 2009). The CPSC cannot test every product available in the market. They tend to pick items that are popular or possibly going to do good in the market. Recently in the past few years, video game consoles have been the top choice for inspections around Christmas time when people give the most gifts.

The CPSC has found several errors in the game systems electrical system that could have possibly posed a imminent danger and could set fires to someones home possibly (Mays, 2009). Since the CPSC investigated the products ahead of their release dates, they was able to recall the product before they ever left the shelf. The crisis was fixed before the company had to do a mass recall of their product. In the long run the gaming industry saved money on the call. They were a little upset about the recall at first, but were happy they possibly avoided law suits and scrutiny from the public's eye.

Recently, we have all probably heard about the mishap that Toyota faced and how many individuals were affected from the deficiencies. Toyota is taking action to resolve their issues by responding to the problem. The media, while discussing these issues, have hardly mentioned the organization that made this recall occur. The organization behind the recalls is The National Highway and Transportation Safety Association (NHTSA) (Mays, 2009). The NHTSA was not able to investigate the manner before hand like the CPSC prior to the problems occurring. The NHTSA has found themselves at the front of one of the most expensive and largest recalls in the history of automobiles (Griffin, 2002).

There are several agencies that help protect and provide control over companies. The U.S. Coast Guard, the...
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