15
Corporate Risks: Unit 3
15.1 Safety of Products and Services
Companies must provide safe products and services to their customers and employees, and for companies that produce or market products, the lack of product safety is a risk.
When businesses agree to sell consumers a specific quality of goods or services for a specified price, consumers expect to receive the promised product, and they expect that the product will not have any unexpected or hidden harmful effects. Businesses selling products to consumers are legally constrained by implied warranty, the expectation that their products are fit for normal use even if no written guarantee is provided.*
* K. Blanchard, C. Schewe, B. Nelson and A. Hiam, Exploring the World of Business
