Regarding the Quality of Design, Production, and Distribution of Products

question 201

Multiple Choice

Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to:

• A) determine whether any of the organization's stakeholders are being wronged by poor quality products.
• B) gain ISO 9000 certification for the organization.
• C) obtain a product safety certificate from the Consumer Product Safety Commission.
• D) have the organization's legal staff write disclaimers in the product instruction booklets.
• E) compare the cost of product liability to the external failure cost.

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Definitions:

Rights

Entitlements or freedoms granted to individuals or groups by law, social convention, or moral principles.

Liabilities

Financial obligations or debts that a company or individual owes to others.

Title

A legal term that signifies ownership rights over property, assets, or an interest in property or assets.

Destination Contracts

Agreements where the seller is responsible for delivering goods to a specific place, and risk of loss does not pass to the buyer until the goods reach that location.