By Somdev Mukherjee
Recalls are basically efforts at limiting liability for corporate negligence. These are requests made to the maker of a batch or an entire production run of a product upon discovery of some issues of safety concern. Corporate negligence can even lead to the imposition of costly legal penalties is recalls are not made in time. Damage to corporate publicity that can result from such corporate negligence is also minimized or avoided altogether by recalls.
Product recalls call forth expenses to be met by the company. Costs relating to the replacement of the recalled product or for the damages caused in its use will need to be incurred. However, such costs are negligible in comparison to the indirect cost that may need to be borne because of the damages caused to the brand name.
The suitable way of proceeding with making product recalls involves complying with the following sequence of steps:
The consumer will be compensated no doubt. However, the ways in which the compensation will be provided will be varying with the specific consumer trade protection related laws and will also be depending on the cause of recall. The procedures may be varying too according to local laws.
Somdev Mukherjee is a Kolkata (India) based writer of articles, short stories, poems and web content related to finance, mortgage, debt consolidation, insurance, laws and other topics of interest.