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  3. Charlie’s Chainsaw Company has reason to believe that one of its models of saw i

Charlie’s Chainsaw Company has reason to believe that one of its models of saw i

游客2024-01-13  50
问题 Charlie’s Chainsaw Company has reason to believe that one of its models of saw is defective. A recall of all of the saws would cost more than $5 million, and would probably result in a loss in market share over the next quarter because of bad publicity. Still, a recall is the right economic decision.    Which of the following, if true, most supports the conclusion above?
选项 A、Defective chainsaws can seriously injure or even kill the people who use them.
B、Charlie’s chief rival has recalled two of its products within the past year.
C、Product recalls often result in a perception by customers that a given product is permanently defective, even after the defect has been remedied.
D、The stocks of publicly traded companies that announce product recalls often drop upon the announcement, but they generally return to the pre-announcement level within 12 months.
E、Three years ago a rival company went out of business because of large punitive damages awarded to a plaintiff who had been injured by a defective chainsaw.
答案 E
解析 Answer E suggests that the company has a justifiable concern that ff the product is not recalled, the company could be involved in a damaging lawsuit that could even lead the company into bankruptcy; this concern provides a strong economic incentive to recall the chainsaws. Answer A could be correct if the passage referred to a "moral decision" or just "the right decision," but since the passage specifically refers to an "economic decision," answer E is the best choice.
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