ETHC232
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DeVry University, Chicago *
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232
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Business
Date
Feb 20, 2024
Type
pptx
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8
Uploaded by DoctorOxidePigeon28
Unsafe Product
Aminata Jabbie
DeVry University
ETHC232
Definition of Unsafe Products
According to the Consumer Report, an unsafe product is “product safety defect that creates a significant risk of injury to the public”. Those products can have various levels of unsafe features, which in the worst-case scenario can be recalled at the cost of the Manufacturing company.
Case Study
Earlier this year, Mercedes-Benz parent company Daimler announced that they would recall unsafe car models due to the sunroof glass panel being improperly installed. Over 700,000 Mercedes vehicles that range from models produced between 2001 to 2011are planned to be recalled due to the highly potential hazard. Beside the recall, car owners who have fixed the problem out of their own pocket can potentially seek reimbursement.
This is not the first time that Mercedes-Benz has been involved in a scandal that involved recalls and fines. Just late last year the US branch of the company agreed to pay a penalty of $20 million, because of how previous recalls have been handled. Prior to that the European branch of the company was fined €870 million, because of a modification that was made to the card knowingly to falsify the emission results, and made cars appear to be cleaner than they truly were.
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Laws
” The National Traffic and Motor Vehicle Safety Act (originally enacted in 1966 and now recodified as 49 U.S.C. Chapter 301) gives the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) the authority to issue vehicle safety standards and to require manufacturers to recall vehicles that have safety-related defects or do not meet Federal safety standards. Since then, more than 390 million cars, trucks, buses, recreational vehicles, motorcycles, and mopeds, as well as 46 million tires, 66 million pieces of motor vehicle equipment, and 42 million child safety seats have been recalled to correct safety defects.
Manufacturers voluntarily initiate many of these recalls, while others are either influenced by NHTSA investigations or ordered by NHTSA via the courts. If a safety defect is discovered, the manufacturer must notify NHTSA, as well as vehicle or equipment owners, dealers, and distributors. The manufacturer is then required to remedy the problem at no charge to the owner. NHTSA is responsible for monitoring the manufacturer’s corrective action to ensure successful completion of the recall campaign.”
https://www-odi.nhtsa.dot.gov/recalls/recallprocess.cfm
Solutions and Impacts
By now we are all aware of the negative impacts faulty vehicular products can have, not only for their consumers, but also for other participants on the road and Air pollution. The underlying issues of cover ups by big companies, such as Mercedes Benz for example do not come to light until negative effects have already started. A lot of times, companies that knowingly produce faulty products, have a budget set aside for penalties and recalls, which gives the impression that they do not have much interest in finding a constructive solution.
If these companies were to learn from minor and major mistakes, they would be able to create an almost perfect car, that the consumer can drive without having to be worried that it could stop working at any time. When recalls are announced, the reason for the recall is shared, those setbacks should be implemented in the following car series that are produced, which will help nurture trust from buyers. Improving from feedback can also help find a solution, that other companies haven’t gotten to yet, which will set one company apart from another, create interest, make them standout, increase stocks, and increase sales. Which, if the outcome is without glitches, can save the money that are set aside for penalties and be looked at as profit.
In order for that to happen, consequences have to be harsher in order for companies to see that turning a positive leaf over is more beneficial, rather than finding ways to better hide their unnecessarily faulty products.
Why are unsafe Products still on the market?
Unsafe products are a topic that might never be able to be under full safe control, because companies are now estimating losses due to recalls into their budgets to guarantee a financial profit, even in the event of being forced to recall products and paying possible fines for knowingly ignoring failed prior testing before launching them into the market.
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How to minimize purchasing unsafe products?
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Doing research and reading reviews
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Educate yourself on articles about top rated cars
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Inquire about the recall patterns and car ratings on the National Highway Safety Administration (NHTSA) website
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Ask around for personal experiences from previous and current buyers
References
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Unsafe by definition: Substantial product hazard. (n.d.). Retrieved from https://www.consumerreports.org/cro/news/2010/09/unsafe-by-definition-substantial-product-hazard/index.htm
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Shepardson, D., & Reuters. (2020, January 5). Mercedes recalls 744,000 U.S. vehicles for faulty sunroofs. Retrieved from https://www.autonews.com/regulation-safety/mercedes-recalls-744000-us-vehicles-faulty-sunroofs
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O'Kane, S. (2019, September 24). Daimler fined nearly $1 billion for selling cars that cheated emissions tests. Retrieved from https://www.theverge.com/2019/9/24/20881603/daimler-dieselgate-mercedes-benz-emissions-
cheating-fine
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Vehicles, Air Pollution, and Human Health. (n.d.). Retrieved from https://www.ucsusa.org/resources/vehicles-air-pollution-human-health
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https://www-odi.nhtsa.dot.gov/recalls/recallprocess.cfm
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