Samson Electronics sold 10 million units of its new cutting-edge smartphone at a price of $800....
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Samson Electronics sold 10 million units of its new cutting-edge smartphone at a price of $800. It recently found that the smartphone's battery can overheat and explode during charging due to a manufacturing defect. This defect affects just 0.1% of all units sold (i.e., the remaining 99.9% are perfectly safe), but the company cannot determine which units are defective and which units are safe. What should Samson do? (select ALL correct answers) Keep quiet about the defect to protect the Samson brand name. When a defective phone causes a fire, quietly settle the customer's lawsuit. The expected cost of lawsuits is $250 million. Stop selling the phone in the US to avoid expensive lawsuits but keep selling the phone in countries with a weak legal system. The expected cost of lawsuits in these countries is negligible. O Warn customers about the problem and advise them to buy additional fire insurance and to charge the phone in a bucket of sand to reduce the risk of a fire. Offer customers a Samson- brand bucket of sand at a discounted price of $25 plus shipping. O Issue a world-wide recall of the phone and replace the battery at the company's expense in all units sold world-wide. The expected cost of a recall is $800 million. Samson Electronics sold 10 million units of its new cutting-edge smartphone at a price of $800. It recently found that the smartphone's battery can overheat and explode during charging due to a manufacturing defect. This defect affects just 0.1% of all units sold (i.e., the remaining 99.9% are perfectly safe), but the company cannot determine which units are defective and which units are safe. What should Samson do? (select ALL correct answers) Keep quiet about the defect to protect the Samson brand name. When a defective phone causes a fire, quietly settle the customer's lawsuit. The expected cost of lawsuits is $250 million. Stop selling the phone in the US to avoid expensive lawsuits but keep selling the phone in countries with a weak legal system. The expected cost of lawsuits in these countries is negligible. O Warn customers about the problem and advise them to buy additional fire insurance and to charge the phone in a bucket of sand to reduce the risk of a fire. Offer customers a Samson- brand bucket of sand at a discounted price of $25 plus shipping. O Issue a world-wide recall of the phone and replace the battery at the company's expense in all units sold world-wide. The expected cost of a recall is $800 million.
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The lorect anwer is D 133ue a world wide Hecall of the phone and oploce the battery at ... View the full answer
Related Book For
Statistics for Managers Using Microsoft Excel
ISBN: 978-0134173054
8th edition
Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat
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