Question

1. If you were an executive of Mega Brands, what concerns would you express to the CEO about the Magnetix Toy issues noted above?
2. If the CEO didn’t pay any attention, what would you do?
3. Should the CPSC have more powers to deal with such hazards and companies? If so, what would they be? If not, why not?

Mega Brands has been selling Magnetix toys for many years. It also sells Mega Bloks, construction toys based on Spider-Man, Pirates of the Caribbean, as well as other products in over 100 countries. In 2006, Mega Brands had over $547 million in revenue, including over $100 from magnetic toys, but its share price fell approximately $27 to $20.30 in mid-July 2007. One reason for the fall was that a child, who had swallowed a magnet that had fallen out of a toy, had died in the late fall of 2005. The U.S. Consumer Products Safety Commission (CPSC) had issued a product recall in March 2006.



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  • CreatedOctober 28, 2014
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