When Ford Discovered the Fault with Its Fiesta Model That

question 13

Multiple Choice

When Ford discovered the fault with its Fiesta model that caused the car to explode easily when hit from the rear,what action should it have taken to preserve basic consumer rights?

• A) Ford should have performed a cost benefit analysis to determine whether it would save more money by doing nothing or by rectifying the problem.
• B) Ford should have launched a campaign warning consumers of the defect so they would avoid getting in accidents.
• C) Ford should have warned consumers of the explosions,recalled all of the defective automobiles,and corrected the problem.
• D) Ford should have quietly ignored the problem and phased the Fiesta out of its automobile lineup.
• E) Ford should have redesigned the automobile to make it safer for consumers in the future.

---

Definitions:

Control Account

A summary account in the general ledger that consolidates and reflects the total amount of transactions recorded in subsidiary ledgers for easier oversight and reconciliation.

Invoice Price

The initial quoted price on an invoice prior to deductions such as discounts, allowances, or rebates.

Discount Period

refers to the time frame in which a sales discount is available to a customer, encouraging prompt payment.