HighTech Incorporated manufactures computer chips and components. HighTech has just introduced a new version of its memory chip, which is far faster than the previous version. Because of high product demand for the new chip, the testing process has been thorough but hurried. As the firms chief of operations, you discover after the chip has been on the market for a few months and is selling very well that it has a minor fault that will cause hard-to-discover failures in certain, very unusual circumstances.

Required: Now that you know of the chips faults, what should you disclose and to whom should you disclose it?

multiple choice

• If the consequence could cause some damage to a user, the firm should advise users of the fault and the potential implications.

• Because the fault will occur only in very rare and unusual circumstances, the firm doesn't need to advise users of the fault and the potential implications.