A manufacturer of bicycle lights, LumaRide, has discovered that one batch may fail in heavy rain. The business has already sold the product through retailer...
Question 1 Report
A manufacturer of bicycle lights, LumaRide, has discovered that one batch may fail in heavy rain. The business has already sold the product through retailers. Managers are deciding whether to recall the item immediately, despite the costs, or wait for more evidence. Customers, retailers, employees and the product safety regulator may all be affected.
(a) Which stakeholder group is responsible for checking that product safety rules are followed? [1]
(b) Explain one reason why customers are important stakeholders in this decision. [2]
(c) Identify one cost to LumaRide of recalling the lights. [1]
(d) Show one reason why retailers may want a rapid recall. [1]
Answer Details
(a) The government or product safety regulator is responsible for checking that product safety rules are followed. [1]
(b) Customers are important because faulty lights may put them at risk in heavy rain. If customers are dissatisfied or harmed, they may stop buying and the business's reputation may be damaged. [2]
(c) Refund or replacement costs are one cost of a recall. Collection and transport, disposal and lost sales are also valid costs. [1]
(d) Retailers may want a rapid recall to protect their own reputation and reduce customer complaints or possible legal claims. [1]
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