Vending Machine operator suffers the cost of a product recall. Is the wholesaler
ID: 357148 • Letter: V
Question
Vending Machine operator suffers the cost of a product recall. Is the wholesaler responsible if the manufacturer is unable to pay for all the costs of a recall? If the manufacturer or wholesaler must pay for the legitimate costs of a recall, who would determine the legitimacy of each cost and see that it was not creating an opportunity for middleman to make an extra profit?would the results achieved in this case have been different if there was a real vendor retailer partnership?how and why? if the manufacturer must pay for the recall,would this cause some manufacturers to be more careful so as to aviod recalls or would it cause them to hesitate longer before deciding that a recall is necessary?
Explanation / Answer
Determination of the legitimacy of the cost as well as other factors should be decided by operating supervisors of the company this would reduce the chances of a middleman taking advantage of a specific situation.
If there was a vendor and retailer partnership in this specific situation Then there would be no need of the middleman as the customer relations between these two companies would help them to mitigate the specific issue by internal processes. It would reduce the overall cost involved in the specific situation and would increase the service rate as there is a direct exchange between the two companies.
If a manufacturer must have to pay for the record then it would definitely help vendor operators as manufacturers would be more aware of the specific situation to avoid the records as it would definitely go according to the contract. This would help the vendors to maintain more our environment for reducing the number of recalls.
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