In some cases, companies have voluntarily recalled products due to their potential for risk of injury. Because a recall can potentially threaten a company’s reputation, and in severe cases its very existence, every company selling products should anticipate and plan for a product recall.
The company should foresee and prepare for potential financial hardships and liability resulting from a product recall. This article provides a brief discussion of logistical, legal, and financial planning for a product recall.
Excerpted from Inside Counsel. To read the full article, please click here.