Business Ethics Fundamentals - Consumer Responsibilities and Product Safety

Product Safety

• Marlboro Campaign: One of the most successful advertising campaigns; market-tested snack-sized cigars with high nicotine content.

• Ethical concerns:

  • Downplaying health risks through advertising?

  • Targeting consumers despite known health consequences?

Health Risks of Smoking

• Doubles the risk of disease.

• Causes coronary artery disease (2-4 times more likely).

• Smokers die 14 years earlier than non-smokers.

• Leading cause of preventable deaths.

Liability of Manufacturers

1. Product Liability Doctrine:

   • Relationship between buyers and sellers creates moral/legal responsibilities.

   • Producers must deliver products meeting claims.

2. Due Care View:

   • Obligation to prevent consumer injury via defective products.

   • Caveat Emptor: Let the buyer beware.

   • Caveat Venditor: Let the seller beware.

Government Regulation

1. Economic Costs:

   • Government regulations can reduce economic growth and increase compliance costs.

2. Consumer Choice:

   • Empowering consumers with choices based on personal values and market options.

3. Legal Restrictions:

   • State can limit freedom of choice to protect consumers.

Product Quality Warranties

1. Express Warranties:

   • Explicit promise by seller to buyer.

2. Implied Warranties:

   • Product fit for ordinary use.

Consumer Rights

1. Right to safety.

2. Right to seek remedies.

3. Right to be informed.