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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