1. What could Sanfred Koltun have done differently to ensure that his product was safer for consumers? What obligations does a CEO have when staff reports from its own area of expertise?
2. Does a company have any obligations to exceed, for example with respect to product testing, the standards mandated by law? What special considerations come into play for a product designed for use in the juvenile market?
Playskool Travel-Lite Crib (B) Questions
1. What are the potential challenges of a recall?
2. How far should a company go in attempting to retrieve its recalled products?
3. What do you think would be a reasonable rate of retrieval for a product that had proven deadly?
4. How does the monetary cost of a recall weigh against the potential damage to a company's reputation?
5. How should a company weigh loss of life versus injury in the case of infants?
6. What are the ethical implications of their approach to bringing this product to market and, eventually, recalling it?
Playskool Travel-Lite Crib (C) Questions
1. When Thomas Koltun took over Kolcraft, he also inherited the persistent problems with the Travel-Lite. How active should Thomas Koltun be in addressing the legacy of the Travel-Lite?
2. Would it be possible for Thomas Koltun to take actions that could benefit his company? If so, what actions might he take?
3. What responsibility does Travel-Lite present Thomas Koltun bear for the actions of those who ran his company before he arrived?
4. Assume you are a director on Hasbro's board. You hear about the lawsuit related to the Travel-Lite filed after five babies have died (and about a sixth death the following summer)—a ratio of one death for every 2,000 units in a product which prominently carries the Playskool brand name. Given that Hasbro (the licensing company) is thoroughly indemnified by Kolcraft’s (the manufacturing company’s)...