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If a company keeps selling a defective product after a government recall order, what can happen?

Answer and explanation

Correct answer: Serious penalties and customer-safety risks

The governing concept is mandatory product-safety compliance and enforcement. A recall order generally requires a business to stop distribution or sale of an identified product, notify affected parties and follow the authority's corrective instructions. Continuing to sell after the order can expose consumers to injury or loss and may lead to fines, licence action, compensation claims, seizure of goods, prosecution or reputational damage, depending on the law and facts. Option A correctly combines the two central consequences: legal penalty and customer-safety risk. Weather improvement, a change in customer age and machines becoming new are unrelated distractors. Responsible management should preserve records, cooperate with the recall, trace affected units and provide the required remedy or replacement.

Related tags

Business-EnvironmentLegal-EnvironmentProduct-SafetyRecallLegal EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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