Does it take consumer injuries to prompt a product recall?
Product recalls, although potentially quite expensive, are still in a manufacturer or product designer’s best interest, thanks to product liability laws. Indeed, the individual and class action lawsuits brought against General Motors for its ignition switch defect is a bitter reminder of that truth.
The automaker established a $400 million fund for crash victims, which is separate from the costs of the recall. Unfortunately, the recall was elevated to...