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Lesson Plan Template

ETAP 524

Name: Aimee Dars Ellis Module: 5, Audio and Video

Lesson Plan Title

Understanding Product Safety and Liability

Discipline and Topic

This lesson will cover the history of the consumer movement, the key national and internat ional

laws that govern product safety and quality, and ways that companies can promote product

safety in the design and manufacturing process. Well-known product safety failures (e.g., Ford

Pinto, GM ignition switch, etc. will be discussed.

Target Population

Students in this class (Business Ethics) are advanced high school or college students.

General Characteristics: Students taking this class are primarily in the 16-22 age range.

Typically, the class is 40% female, 60% male; 80% white; 95% from the United States with a

middle to upper middle class background.

Entry Competencies: Students have demonstrated effective writing and basic computer and

technology skills in order to have the class standing required. For this lesson, students will have

completed the readings before coming to class.

Learning Styles: Students display a range of learning styles; however, they prefer discussion

and hands-on activities. In terms of Gardner’s theory of multiple intelligences (2011), students in

this class tend to have verbal and visual intelligences as the dominant style.

Curriculum Alignment and Common Core Standards

Initiate and participate effectively in a range of collaborative discussions (one-on-one, in

groups, and teacher-led) with diverse partners on grades 11–12 topics, texts, and issues,

building on others’ ideas and expressing their own clearly and persuasively. (p. 64):

Students will engage in discussion with students in groups and during class activities.

Many of the class discussion questions require students to make a claim and justify it.

Determine an author’s point of view or purpose in a text and analyze how an author uses

rhetoric to advance that point of view or purpose (p. 52): In class discussions, we will talk

about the purposes of two of the videos and how the videos present a given perspective.

Integrate and evaluate multiple sources of information presented in diverse formats and

media (e.g., visually, quantitatively, as well as in words) in order to address a question or

solve a problem (p. 73): Students will be analyzing a mini-case. For successful

completion of the task, they will need to identify and describe the specific problem after

which they will need to use resources to support their chosen course of action.

ISTE NETS Standards

(1) Students demonstrate creative thinking, construct knowledge, and develop innovative

products and processes using technology.

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a. Apply existing knowledge to generate new ideas, products, or processes

(3) Students apply digital tools to gather, evaluate, and use information.

a. Plan strategies to guide inquiry

b. Locate, organize, analyze, evaluate, synthesize, and ethically use information

from a variety of sources and media

ITES Teacher Standards

(1) Facilitate and inspire student learning and creativity: Teachers use their knowledge of

subject matter, teaching and learning, and technology to facilitate experiences that

advance student learning, creativity, and innovation in both face-to-face and virtual

environments.

a. Engage students in exploring real-world issues and solving authentic problems using

digital tools and resources

(2) Design and develop digital age learning experiences and assessments: Teachers design,

develop, and evaluate authentic learning experiences and assessments incorporating

contemporary tools and resources to maximize content learning in context and to develop

the knowledge, skills, and attitudes identified in the Standards•S.

a. Design or adapt relevant learning experiences that incorporate digital tools and

resources to promote student learning and creativity

b. Provide students with multiple and varied formative and summative assessments

aligned with content and technology standards, and use resulting data to inform

learning and teaching

Goals

Students will learn about product safety and liability as it relates to business ethics.

Objectives (State)

a) Students will be able to discuss the history of the consumer movement with 85%

accuracy. (exam)

b) Students will be able to describe the Consumer Product Safety Commission and its

responsibilities with 90% accuracy. (exam)

c) Students will be able to summarize companies’ responsibility for product safety and

liability in the United States with 85% accuracy. (exam)

d) Students will be able to analyze a case that presents ethical issues related to product

liability at an accomplished level.

e) Students will be able to develop a company policy on product safety that addresses at

least five of the key themes of the lesson at an accomplished level.

“Accomplished” is measured by the scores in the first two columns of the grading rubric.

Underlying Educational Theory

In this lesson, I expect to include in-class discussion facilitated by personal response systems.

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Individually, students will analyze a mini-case on product safety. This lesson is based on

constructivism in which a learner is an active participant in the learning process

("Constructivism," n.d.). In this lesson, learning comes from interacting with the content and

other learners. In relating the content to their past experiences and in hearing perspectives from

others, students create knowledge (Harasim, 2012). Class and small group discussions will give

students the opportunity to explore product and safety issues in collaboration with other students.

For the safety policy assignment, students will be working in groups to write a policy appropriate

for a given organization based on research. This reflects problem-based learning (PBL), an

approach commonly used to support constructivist learning environments, in which “students are

faced with contextualized, ill-structured problems and are asked to investigate and discover

meaningful solutions” ("Problem-Based Learning (PBL)," n.d.).

Materials Description and Timing

The classroom has one computer hooked to a projector for instructor use. It is connected to the

Internet and has no blocks on sites. This will be used to display the slideshow and the videos that

accompany this lesson.

Students will need a tablet for this lesson. They will use it to conduct research, respond to polls,

and complete handouts. Most of the students have their own tablets. Those who do not can

borrow one for the class period from the school’s lending library. Some students may be able to

complete the tasks on a smartphone. To complete the tasks in this lesson, they will need a web

browser and a word processing app.

Potent Powdered Caffeine Raises Safety Worries (NPR) (audio, 3:49): This NPR story

reports on the death of 24 year-old Wade Sweatt who died in June 2014 after consuming

caffeine powder. Talking to reporter John Stein, Sweatt’s father reveals details of his

death and discusses his initiative to get the powder banned by the FDA. The story goes

on to offer perspectives for and against a ban and explains what the FDA has done so

far. [a what-would-you-do clip]

P&G Product Safety (video, 2:00): This animated clip described Proctor and Gamble’s

product safety testing process in which they define the safe range for an ingredient,

determine if it is safe as used in the P&G product, and continually research for improved

safety. The clip gives students an indication of what companies might do to ensure

consumer safety, but it also is marketing communication designed to make consumers

feel confident about purchasing P&G goods.

We are CPSC! (video, :59): Representatives from various departments of the Consumer

Product Safety Commission, such as inspection and testing, are shown in their work

environment and yell out what they do after which they say, “I am CPSC!” It’s a little

goofy, but presents a lot of information about the agency in a brief, digestible format.

Ford Pinto Full Rear Crash Test (video, 1:54): I’ve watched this several times over the

years and still can’t believe it. The clip shows a crash test with a Chevy Impala hitting a

Ford Pinto in a rear-end collision. Within seconds, a raging fire encompasses the two

cars as fire-fighters on hand rush to quench the flames. After a time jump, a man opens

one of the car doors to see the interior impact of the crash. [THERE IS NO SOUND IN

THIS VIDEO.]

The Feds vs. Craig Zucker (video, 7:32): From reason.tv, this segment incorporates anti-

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buckyball clips, explains why some want the buckyballs banned by the CPSC, and

includes an interview with Craig Zucker. It is interesting because it’s from Zucker’s point

of view and because it talks about the statistics used. The analysis puts it in the safe

range since 22 swallowing incidents were reported, a 1 in 100,000. Dog bites,

skateboarding accidents, consumption of household toxins, and playing tennis all have

higher incident rates. However, the impact of the buckyballs is high. This will get

students thinking about the bar for public safety.

Magnetic Balls Danger (video, 1:37) Consumer reports produced this video to help lobby

the CPSC to ban buckyballs. The mother of a child who swallowed buckyballs is

interviewed with video of the child playing as she describes the resulting surgery. A

pediatric surgeon describes how swallowed buckyballs cause so much damage.

HANDOUT: Federal Laws Relating to Consumer Protection

HANDOUT: Product Liability

HANDOUT: Company Safety Policies

HANDOUT: Companies and the Consumer Protection Movement

POWERPOINT PRESENTATION

Evaluation of audio/video resources:

Alignment with Standards, Outcomes, and Objectives: The hardware and software

required provide the means to participate fully in the lesson. The video and audio

selections reflect the content included in the learning objectives.

Accurate and Current Information: All material includes accurate information and

were created in the past two years, except for the Ford Pinto Crash Test, a classic

Business Ethics example.

Age-Appropriate Language: The audio and visual material is all geared toward a

general audience. Vocabulary is estimated to be at a 7th grade reading level, and there is

no inappropriate language in the selections.

Interest Level and Engagement: The audio file is short, and it presents a scenario that

might be relevant to them – taking a substance for energy. I’ve shown the Ford Pinto test

crash video before, and it is always a popular clip. The other two videos are also brief.

The CPSC video is a little goofy, but it presents necessary information in a manner that is

at least visually engaging. The Proctor and Gamble short has good production values and

should appeal to students.

Technical Quality: The suggested tablets (computer hardware selection rubric: Apple

iPad, Samsung, or Toshiba) all have high technical quality.

Ease of Use: Tablets are easy to use. Some students may need instruction on accessing

Poll Everywhere via their web browser or assistance with the word processing app.

Bias Free: I didn’t observe any biases in the material.

User Guide and Directions: Tablets, Poll Everywhere, and word processing apps have

extensive online support. No directions are needed for the visuals.

Supplemental Materials/Links

Groups Call for Stronger Customer Rights

The Government is Trying to Keep You from Swallowing Magnets (Vice)

Pinto Madness (Mother Jones)

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That Buckyball Guy is Suing the Feds for Free Speech (BloombergBusiness)

The American Chamber of Horrors (FDA)

FDA Consumer Advice on Powdered Pure Caffeine

Lesson

This lesson will be conducted over three 50 minute class sessions.

Students will have a smartphone or tablet they can use for following the PowerPoint

presentation, taking notes, conducting in-class research, and completing handouts for this lesson.

Before the lesson, students will have read the assigned material and completed the Product

Safety Laws handout.

Day 1

:00 - :05: Announcements and Introduction (Voki lesson introduction, optional:

http://www.voki.com/pickup.php?scid=11240329&height=267&width=200)

:05-:20: Students will use their S/T to access a description of the “American Chamber of

Horrors,” an exhibit curated in the early 1930s by FDA officials to lobby Congress for stricter

laws and truth in packaging. Students will be given instructions to make notes about the material

that was surprising and that they think they will remember. An open-ended Poll Everywhere

question will require students to report on these two questions, after which we will briefly

discuss their responses. [This can be removed if necessary for time]

:20-:28: We will discuss in general the laws that relate to product safety. This slide (#5) relates to

the consumer protection laws handout that students completed before class. I will pick two or

three laws and randomly call students to explain the laws.

:28-:34: Class will view the “I am CPSC” film (on youtube) and after the clip, there is a MC Poll

Everywhere question. After the poll, I will ask students, “So, what does the CPSC do?” Students

can volunteer to answer, and I will keep a tally on the smartboard or blackboard, adding any

responsibilities that the students might have missed. We will also talk about how the federal

budget process affects CPSC’s ability to operate effectively [Slides 6-7]

:34-:45: Students will complete Product Liability worksheet.

:45-:50: Wrap-up and discussion of assignments

Day 2

:00-:05: Announcements and Introductions

:05-:10: Companies vs. Computers Poll Everywhere question, after which students will volunteer

to explain their position. Expecting to have strong split for better discussion.

:10-:20: Ford Pinto: Play the Pinto crash test, discuss scenario, show students advertising and

cost-benefit report – ask students for general reflections – students may compare with recent GM

ignition switch recalls

:20-30: Buckballs: Show first BB clip with founder, PollEverywhere Y/N question about ban on

buckyballs. Show second BB clip with injured child. Another Poll – students will split into small

groups to discuss and two or three groups will report out.

:30-:35: Class will watch P&G safety video. Following the video, there are two T/F Poll

Everywhere questions to spur discussion. [slides 8-9]

:35-45: Potent powered caffeine – NPR story. Ask students to note the details and the issue

(should FDA ban powered caffeine?) – with buckyball story, reflects tension between product

safety and product responsibility. If company provides clear warnings, should they be a fault

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when customers misuse product? Poll Everywhere MC question to stimulate responses.

:45-:50: Wrap-up and discussion of assignments

Day 3

:00-:05: Announcements and Introductions

(If P&G video not viewed on Day 2, can be included here, given as homework, or omitted)

:05-:20: Group activity: Product Safety Policies

:20-:45: Consumerism [slides 17+]. Tell students about the consumer protection movement.

Before showing text of slide 18, will have the title only – students will volunteer what rights they

think customers should expect, after that, will show the five rights from the 60s. Students will

complete Companies and the Consumer Movement handout.

:45-:50: Wrap-up and discussion of assignments

Assessment of Students

Formative assessments

Poll Everywhere Questions

Handouts

Evaluation of Student Responses in Discussion

Summative assessment

Mini-case

Questions on unit exam

VIDEO ASSIGNMENT: Company safety policy (group)

Evaluation of Students and Lesson

Evaluation of Students and Lesson

At least 80% of students will be able to discuss issues related to product safety with 90%

accuracy.

At least 80% of students will be able to generate company policies that promote and

protect customer safety at an accomplished level.

At least 80% of students will be able to analyze a case about product safety at an

accomplished level.

“Accomplished” level refers to the two top categories listed in the grading rubrics.

In class formative assessments will be used in conjunction with student performance on

summative assessments. These assessments will be used to adjust instruction in real time if

necessary and will also inform revisions to the lesson in future semesters. Some of these are in-

class observations, and in those cases, I will keep a tally of students who understand/don’t

understand. For handouts submitted online and open-ended poll questions, I will categorize them

as Very well done/ well done / needs work. If more than 15% of students fall in the lowest

category, I will take action to improve the lesson by teaching the material differently and/or

providing additional resources.

Low Tech Modification

If no technology is available, I will have a copy of the lesson. I will write pertinent information

on the chalkboard. I will have some copies of the handouts that students can complete. Since the

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audio and video selections require technology, I will give the students a brief introduction and

assign them as homework. I’ll post links to the material on the CMS. For MC and T/F Poll

Everywhere questions, I will simply ask them and ask students to raise their hands or hold up a

card to indicate their response. For open-ended, I will pose the questions and have student

volunteers respond or possibly do a pair-share or group activity around the questions.

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Mini-Case Study Guidelines

After reading the “I-Warn-Ya Ammonia” mini-case, answer the following questions in a 3-5

page paper.

1. Statement of the Problem

Provide a brief but accurate overview of the case and a clear statement of the ethical

dilemma facing the organization.

2. Stakeholders

Describe the stakeholders, their concerns, and salience (power, urgency, legitimacy).

Explain impact of the situation on stakeholders. Be sure to consider the impact on those

not specifically mentioned in the case if applicable.

3. Alternatives

Develop a list of at least three significantly different possible ways to resolve the problem

you stated earlier. These should be well-developed, detailed, and based on course

concepts. Identify the pros and cons of implementing each alternative as well as the

ethical implications. While “doing nothing” is always a possible solution, it is not an

acceptable alternative for this assignment.

4. Recommendation

Select one of the alternatives and explain why it would be best. Circle back through the

case to identify possible points of inconsistency between your recommendation and case

facts. Does your alternative sufficiently address the problem in the case? What potential

obstacles might crop up? How stakeholders react, and how will you handle their

responses? What assumptions have you made in developing your recommendation?

5. Implementation and Conclusion

Present a plan for implementing the recommended alternative including a time-line. In

this section, you want to consider how to make your recommendation a reality. What

processes might need to be changed? What stakeholders may need to be approached? Is

training necessary? Be specific!

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Mini-Case Analysis Grading Rubric

GUIDELINES Superlative Exemplary Developing

Define the Problem Superlative summary of

problem in the case

Major issue description

provided but some

dimensions not included

Decision issue

description largely

incomplete or the major

decision issue

misidentified

Stakeholders Key stakeholders are

identified and their

saliency is discussed in

superlative detail.

Most key stakeholders

are identified and most

aspects of saliency are

identified satisfactorily.

Some key stakeholders

are not identified;

discussion of saliency is

incomplete.

Alternative Solutions Well-reasoned and

appropriate suggestions

that address key problem

of case with strong

development of pros/cons

with strong links to

course material

Appropriate alternatives

for the major issue in the

case with more

development needed.

Includes general

references to course

material.

Inappropriate

alternatives, without

development, that do not

address the major issues

of the case. Links to

course material unclear.

Recommendation

Final recommended

course of action is clearly

stated and fully justified

based on strong

integration of course

material. Superlative

demonstration of how

problem will be solved.

Final recommended

strategy presented

without full justification.

Some indication of how

problem will be solved.

Brief statements are made

about what needs to be

done, but few specifics

are provided.

OR

Feasibility of

recommendation can be

questions

Describe

Implementation and

Conclusion

Specific detailed actions

to achieve

recommendations are

identified with strong

justification

Specific detailed actions

to achieve

recommendations are

identified with

justification

Actions to achieve

recommendation are

identified with little to no

justification

Writing Paper is well organized,

cohesive, and utilizes

grammar, style and

appropriate writing

techniques

Generally well-presented

but paper has some errors

Serious and consistent

style and grammar errors

in the paper

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Case: I-Warn-Ya Ammonia

Topic: Product Liability Issues

Characters: Mark, Marketing Sales Representative

David, farmer/owner of product

Jim, hired man who suffered anhydrous ammonia burn

Lee, president of agricultural products firm

Mark had been an agricultural products representative for just over 19 months. During his initial

year of probation and the subsequent months, he had proven himself over and over again for the

company. His farm background enabled him to establish great rapport with his farmer clients.

The product line included agricultural-related safety items, primarily for power equipment.

During a recent visit with Dave, one of his best clients, Mark was told about a farming accident

that had occurred over six years previously. A shutoff valve between a tractor and an anhydrous

ammonia tank had broken. Jim, the hired man, had been burned by the spraying ammonia.

Litigation had never been initiated even though Jim had incurred close to $20,000 in medical

expenses.

Upon his return to the office, Mark pulled the files on the shutoff valve. Although the valve had

been removed from the market several years earlier, there were five similar cases noted in the

file. All had been settled directly with the farmers, and no formal litigation had been filed. The

defective valves had been advertised as “totally safe.” Anytime the connectors between the

tractor and the ammonia tank were incorrectly disconnected, the shutoff valve was supposed to

engage and prevent accidents. Because of the accidents, sale of the valve had ceased.

Mark’s curiosity about the fact that nothing had really been done for the clients got the best of

him, so he went directly to Lee, the company president, about the matter. Upon hearing him out,

Lee got up, closed his office door and proceeded to give him the following bit of advice. “Look,

the statute of limitations on that product is seven years. If we can hold out just a few more

months, we’ll be in the clear. What Dave and those other clodhoppers don’t know is their

problem. The original product was defective and pulled.” When Mark started to protest, Lee said,

“I’m warning you to keep your mouth shut and you’ll continue to do well with our company!”

Author: Dennis J. Elbert, Professor of Marketing, University of North Dakota

Co-author: John Gillett, Associate Professor of Accounting, University of North Dakota

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Sample Exam Questions

List and describe three of the major product safety and liability laws in the United

States.

See worksheet for master list of laws

Describe the Consumer Product Safety Commission and its responsibilities.

The Consumer Product Safety Commission (CPSC) was established in 1972 to protect the public

from unreasonable risk of injury caused by consumer products. To achieve their mission they

Develop voluntary standards with industry

Issue and enforce mandatory standards

Ban consumer products if no standard would adequately protect the public

Issue recalls of products and arrange for repair, replacement or a refund

Conduct research on potential product hazards

Inform and educate consumers through the media, state and local governments, private

organizations, and by responding to consumer inquiries.

Adapted from CPSC website

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Federal Laws Relating to Consumer Protection

Name: Date:

For each law, provide a brief description and identify the federal agency that enforces it. Note

any precipitating factors that precipitated the legislations.

Drug Importation Act of 1848

One of the earliest pieces of legislation related to public safety, it allowed U.S.

Customers Offices to inspect imported drugs so that no “adulterated” drugs would enter

the country

Sherman Anti-Trust Act of 1890

After the Civil War, businesses gained significant power and many companies had

monopolies. Public pressure, particularly from farmers who protested high railway

prices, led to the Act. The Act limits monopolies. In 1895, the Supreme Court challenged

the Act when it ruled in favor of the American Sugar Company (which controlled almost

100% of sugar refineries. However, in the early 1900s, the Supreme Court ruled in favor

of the government and ordered companies (e.g., Standard Oil) to break up. Different

Presidential Administrations had different polices regarding the Act. Reagan, for

example, rarely went against corporate interests.

The Food and Drugs Act of 1906

Public pressure, particularly from women’s groups, and the publication of The Jungle by

Upton Sinclair (about practices in the meat industry) catalyzed Congress to pass this Act:

“For preventing the manufacture, sale, or transportation of adulterated or misbranded

or poisonous or deleterious foods, drugs, medicines, and liquors, and for regulating

traffic therein, and for other purposes.”

Flammable Fabrics Act of 1953

This Act, originally enforced by the Federal Trade Commission, regulates “highly

flammable” clothing. In 1967, Congress amended the Act so that it applied to furniture,

paper, plastic, foam, and materials used in clothing and furniture.

Fair Packaging and Labeling Act of 1967

With the passage of this Act, the FDA and FTC were charged with issuing regulations for

labeling “consumer commodities.” Labels need to include a statement identifying the

product, the name and location of the provider, and the weight, measurement, or count.

Consumer Product Safety Act of 1972

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This law created the Consumer Product Safety Commission with a charge to protect the

public from injury or death caused by consumer products. The CPSC has the authority to

develop standards, issue bans, and recall items. Amendments to the ban have added more

products. Additionally, manufacturers are now subject to civil and criminal penalties

Child Safety Protection Act of 1994

With this Act, Congress required toy manufacturers to display warning labels on

packages if they have small parts or are otherwise hazardous to children. It also requires

children’s bicycle helmets to meet minimum safety standards.

Food Allergy Labeling and Consumer Protection Act of 1994

Eight foods are responsible for 90% of allergic reactions to foods: milk, eggs, peanuts,

wheat, soy, fish, and shellfish. If a food items contains these ingredients, the package

must be labeled. These labels appear underneath ingredient lists and read, “This product

contains WHEAT/SOY/ETC.”

Credit Card Accountability Responsibility and Disclosure Act of 2009

This Act requires credit card issuers to give consumers adequate time to pay (usually a

month), limits interest rates for low-balance cards, requires credit cards to give advance

notice of changes in interest rates, and limits marketing of cards to consumers younger

than 21.

Dodd-Frank Wall Street Reform and Consumer Protection Act, Titles X and XIV (2010)

In response to the economic crisis of 2008 characterized by the issuance of high interest

rate loans, often with balloon payments, this Act created the Consumer Financial

Protection Bureau. The CFPB is charged with issuing regulations and enforcing

financial protection laws, restricting unfair, deceptive, or abusive practices by lenders,

accepting consumer complaints, promoting financial education, and monitor markets for

possible risks to consumers

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Product Liability

Name: Date:

Answers 1 and 2 from Cornell Law (https://www.law.cornell.edu/wex/products_liability)

1) What is product liability?

Products liability refers to the liability of any or all parties along the chain of

manufacture of any product for damage caused by that product. This includes the

manufacturer of component parts (at the top of the chain), an assembling manufacturer,

the wholesaler, and the retail store owner (at the bottom of the chain). Products

containing inherent defects that cause harm to a consumer of the product, or someone to

whom the product was loaned, given, etc., are the subjects of products liability suits.

While products are generally thought of as tangible personal property, products liability

has stretched that definition to include intangibles (gas), naturals (pets), real estate

(house), and writings (navigational charts).

Products liability claims can be based on negligence, strict liability, or breach of

warranty of fitness depending on the jurisdiction within which the claim is based. Many

states have enacted comprehensive products liability statutes. These statutory provisions

can be very diverse such that the United States Department of Commerce has

promulgated a Model Uniform Products Liability Act (MUPLA) for voluntary use by the

states. There is no federal products liability law.

In any jurisdiction one must prove that the product is defective. There are three types of

product defects that incur liability in manufacturers and suppliers: design defects,

manufacturing defects, and defects in marketing. Design defects are inherent; they exist

before the product is manufactured. While the item might serve its purpose well, it can be

unreasonably dangerous to use due to a design flaw. On the other hand, manufacturing

defects occur during the construction or production of the item. Only a few out of many

products of the same type are flawed in this case. Defects in marketing deal with

improper instructions and failures to warn consumers of latent dangers in the product.

2) What is strict liability?

Strict liability wrongs do not depend on the degree of carefulness by the defendant.

Translated to products liability terms, a defendant is liable when it is shown that the

product is defective. It is irrelevant whether the manufacturer or supplier exercised great

care; if there is a defect in the product that causes harm, he or she will be liable for it.

3) Describe product liability laws in China and one other country

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The apparent expanded protection against defective products and the introduction of

punitive damages are key features of the new Tort Law. Their inclusion may in large part

be viewed as a response to product scares in recent years. For example, the Sanlu

tainted-milk incident—which reportedly left at least six infants dead, roughly 300,000

others suffering from lingering health problems, and a wave of discontent in its wake—

prompted government officials and the public to openly demand stronger governmental

oversight, harsher punishment for wrongdoers, and swifter, more effective mechanisms to

limit the potential harm caused by dangerous products (see the CBR, May-June 2009,

Ethical Supply Chain Management).

Until the Tort Law takes effect, the Product Quality Law remains the main source of

principles to be applied in cases involving defective products. The Product Quality Law

recognizes two types of product deficiencies, “flaws” and “defects,” which are subject to

different liability rules. The term product “flaws” (xia ci) generally refers to minor non-

conformities, such as a product’s failure to function as it should or when a product’s

quality does not conform to the standards specified on the product or its packaging.

Where product flaws cause injury to the consumer, the seller is liable for compensating

the consumer’s losses. If the flaw is the fault of the manufacturer, the seller is entitled to

recover its losses from the manufacturer after compensating the consumer. A product

contains a “defect” (que xian) if there is an unreasonable danger inherent in the product

that threatens the health or safety of persons or property, or if the product does not

conform to applicable national or industry health and safety standards. In cases

involving product defects that cause personal injury, death, or property damage (other

than to the product itself), the Product Quality Law requires the manufacturer to assume

compensation obligations.

Though the new Tort Law does not use the term “flaw,” it appears to expand the scope of

parties from whom a plaintiff may seek damages in cases where injury is caused by a

product defect. Under the new law, a plaintiff may seek damages from either the

producer or seller of a product that contains a defect, regardless of who caused the

defect. In cases where a seller can show that the product contained a preexisting defect,

the seller has the right to seek contribution from the producer, assuming that the

producer can be identified. (“Contribution” refers to what the defendant has a right to

collect from others who are responsible for the harm caused.) Third parties in the

product distribution chain may also be held liable: The Tort Law states that if injury to

other persons is caused by defects resulting from third-party transportation or storage

services, the producer and seller of the defective product have the right to seek

contribution from the responsible third party.

From China Business Review: http://www.chinabusinessreview.com/chinas-new-tort-

law-dawn-of-the-product-liability-era/

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Company Safety Policies

Name: Date:

1) What are the strengths of the safety policy that you reviewed?

covers products and packages

considers product quality/safety, employee safety, health/environmental standards

specifies same standards in all markets (so other countries don’t get safer or less safe

products)

uses various sources for product quality testing

notes that they participate in standards-setting

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Notes that specific metrics are associated with product quality

2) What are the weaknesses?

Does not specify what they will do if product quality/safety issue arises

Does not provide transparency

Does not provide contact information

Is not clear what “the entire Coca-Cola system” includes

Does not provide clear system for ensuring that safety policy is followed (beyond

metrics)

3) If you were assigned to revise the policy, how would you change it?

Provide examples of metrics

Provide process for remedying safety issues (identified after distribution – when

public can purchase)

Would be specific about “the entire Coca-Cola system”

Would include grievance process

Would include system for auditing safety procedures to ensure they align with

safety policy

19

Companies and the Consumer Protection Movement

Name: Date:

How did companies respond to the demands of the consumer protection movement?

1) What did companies do to acquiesce to the demands?

Taking step to ensure high quality

Having a product safety policy

Voluntary industry codes of conduct

Consumer affairs department

Voluntary product recalls

2) How did companies resist, ignore, or challenge the demands?

Lobby for deregulation and/or decreased funding to regulatory agencies

Discredit activists from the consumer protection movement

Claims that consumerism is anti-business or communist

20

Safety Policy

In class, we discussed the essential elements of a product safety policy. With your team, use the

knowledge you gained from class as well as external resources to create a product safety policy

for the company [……].

You need to submit the safety policy in the form of a poster, such as one that might be displayed

in the mail room or lunch room. Additionally, your team needs to create a short video that

introduces the safety policy to employees. You want to present it so that employees 1) know the

importance of and rationale for the policy and 2) understand the individual items that make up

the policy.

Acme Enterprises Puts Safety First

Unsafe products can be expensive. They might require new parts, new machines, returns, or recalls, all of which harm the company’s financial health. Even more serious, product safety issues can harm our customers. Our company is committed to providing safe, high quality, and affordable products. To live up to this objective, AE:

Designs products and services with safety in mind

Researches products and materials and exceed the standards required by law

Maintains strict quality control processes at every stage in the product life cycle

Mandates that our vendors adhere to exacting product and quality control

measures

Responds to customer concerns and queries about the safety of our products

Operates facilities that keep our customers, employees, and our communities

free from harm

If we determine a product safety issue from our internal quality controls, we will

immediately remedy the design, part supplier or specification, and/or process. All

defective products will be destroyed. In the unlikely event that a defective product gets

into the hands of customers, we will immediately act by providing warning notices or

voluntary product recalls.

Once each fiscal year, an external auditor will review our policy and processes to make

sure they align. We will make the results available to the public, along with the

strategies we plan to use to improve our practices.

We will work closely with the government and with non-profit organizations to solicit

information and respond to stakeholder concerns.

21

Video: https://animoto.com/play/QM0cqTl2vH1PVf4dzkdAcw (Doesn’t include rationale,

but offers the gist of assignment.)

22

23

Safety Policy Rubric

Exemplary Accomplished Fair Unsatisfactory

Rationale Presents compelling

need for policy with strong justification

Presents solid need

for policy with justification

Presents need for

policy with some justification

Presents policy with

little or no justification

Content Presents clear,

accurate and

thorough guidelines

Mostly presents

clear, accurate and

thorough guidelines

Guidelines are

presented somewhat

clearly and

accurately

Guidelines had

some major

inaccuracies OR

were usually not

clear

Use of resources Makes effective use

of available

resources;

effectively and

accurately uses

relevant and

sufficient material

from resources; effectively

integrates credible

sources

Makes use of

available

resources; uses

relevant and

sufficient material

from resources;

integrates credible

sources

Makes limited use

of available

resources;

inconsistent use of

relevant and

sufficient material

from resources;

some integration of credible sources

Makes inadequate

use of available

resources;

insufficient use of

relevant and

sufficient material

from resources;

little integration of credible sources

Use of

Multimedia

All resources are

used effectively and

contribute to the

message.

Most graphics, are

used appropriately

to enrich the

message.

Limited graphics

are present but do

not always

contribute to the

debate

Few multimedia

resources, or used

inappropriately; do

not contribute to

debate