Over a Recent Three-Year Period, the Once Admired Company Johnson

question 17

Multiple Choice

Over a recent three-year period, the once admired company Johnson & Johnson experienced 24 product recalls of defective products.When company executives learned that yet another product, Motrin, was defective and needed to be recalled, they:

• A)immediately notified the public and instructed retailers to remove the defective Motrin from the shelves.
• B)instructed retailers to continue selling the Motrin but told them to post a notice warning customers that taking the Motrin could be harmful.
• C)hired contractors to go into stores that sold the product and secretly buy every pack of Motrin on the shelves.
• D)ignored the advice of their quality control people and continued to sell the Motrin without warning customers.

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Definitions:

Compensatory Damages

Financial awards given to a plaintiff to compensate for actual losses or harm suffered.

Misrepresentation

A false statement of fact made by one party to another party, which has the effect of inducing that party into the contract.

Spring

A season of the year following winter and preceding summer, characterized by rising temperatures and the budding of plants.

Contract Rescinded

The act of legally canceling a contract, returning all parties to their positions prior to the agreement.