In: Operations Management
4. Chemical Company created a new product called “Tire Shine” to clean the oil and tar from car tire rims. Chemical company sold 1,000 bottles of “Tire Shine” to Ferrari Corp. Ferrari received and used the “Tire Shine” without altering the product. “Tire Shine” however caused harm to Ferrari employees who used the product, even though they used the product as instructed. In random checks of the “Tire Shine” bottles received by Ferrari, it was discovered that the fumes from the bottles of “Tire Shine” were extremely toxic. If Ferrari can show that “Tire Shine” did not have adequate warning labels mentioning the dangerous conditions or instruction labels indicating how to properly use the product, what cause of action could Ferrari bring against The Chemical Company and why?4. Chemical Company created a new product called “Tire Shine” to clean the oil and tar from car tire rims. Chemical company sold 1,000 bottles of “Tire Shine” to Ferrari Corp. Ferrari received and used the “Tire Shine” without altering the product. “Tire Shine” however caused harm to Ferrari employees who used the product, even though they used the product as instructed. In random checks of the “Tire Shine” bottles received by Ferrari, it was discovered that the fumes from the bottles of “Tire Shine” were extremely toxic. If Ferrari can show that “Tire Shine” did not have adequate warning labels mentioning the dangerous conditions or instruction labels indicating how to properly use the product, what cause of action could Ferrari bring against The Chemical Company and why?
Answer:
The chemical company sold 1000 bottles of ‘tire shine’ products to the Ferrari Corp. Tire shine is used to clean the oil and tar from the car tire rims. Upon using tire shine for its purpose, the employees of the Ferrari Corp were being harmed by the use of the product even when they used the product as per its instructions. However, in random checks, it was found that the fumes from the bottles of tire shine were extremely toxic.
“Tire Shine” did not have adequate warning labels mentioning the dangerous conditions or instruction labels indicating how to properly use the product and if Ferrari Corp can successfully prove this issue of the chemical company than it can sue the chemical company and can ask for the compensation to be paid to the Ferrari Corp and its employees for the harm caused by the product “tire shine” of the chemical company.
Ferrari Corp. can take the legal action and can ask for the compensation since the chemical company has sold the product to the Ferrari Corp and has not mentioned the precautionary measures required to be taken while using its product ‘tire shine’. While selling any kind of chemical product, it is the moral and the legal responsibility of the manufacturing company to mention the precautionary measures and the method of properly using the product so that no harm is caused while using the product.
The chemical company has not mentioned the instruction labels indicating the methods of how to properly use the product and hence it is legally liable to Ferrari Corp for the compensation as it has sold its product to the Ferrari corp.