ABSTRACT
Recall! No other word sends larger and deeper shudders through a company than this one. Recalls can decimate small and medium-sized companies financially and marketwise and can wreak havoc on all facets of the staff. Recognizing how potentially lethal violative products can be, the federal government has developed regulations that define deficient products and explain its responsibility and a firm’s responsibility. Based on these regulations, companies are required to develop formal systems to deal with these types of situations and in tandem forcibly remove from the marketplace products that are substandard. Although this section discusses the regulatory requirements for a company, it does not address the economic or political ramifications with which companies deal regarding recalls.
