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A-1 Trailers

In: Business and Management

Submitted By Jaleesa19
Words 321
Pages 2
Jaleesa McBride
A-1 Trailers Ethics Assignment
08/31/14
The problems with the trailers were caused by design issue. In my opinion both the utilitarian and the rights would come to the same conclusion in regards to dealing with this situation. From a utilitarian point of view, we look at the overall cost. To fix the problem it will cost the company 18 million, while not doing anything and paying legal cost will only cost the company about 12 million. When thinking about the company and its funds, doing nothing seems like a better option since the company will be saving 6 million dollars. On the other hand, trying to save money could ruin the company’s reputation due to the anticipated casualties. The 12 million is just an estimate, it could actually cost more than expected.
From a rights theorist point of view, we must think about how the customer has the right to have a product that will perform the way it was designed to. If the company knowingly continue to sell the defective trailers, is a violation of the rights of the customers. When a customer purchase a product, they are paying the price for a product that is not defective. If the company wish to continue to sell the product and not fix the issues at hand, the customers should be aware of the issue and it should be left up to them whether they wish to use the product. Doing it this way will cause customers to choice other brands for safety and A-1 will begin to see a decrease in revenue. The company will then have a reputation of selling low quality unreliable products. In conclusion, the best decision from both perspective would be to fix the problem to retain its reputation. In the long run it will pay off. They will continue to sell high quality products and keep its loyal...

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