Manufacturer Responsibility

Product Liability
Product liability refers to the legal responsibility of manufacturers, wholesalers, or retailers to ensure that their products are safe for consumers. It arises under the law of torts and holds parties strictly liable for defects that cause injury.
Recall
A recall is an action taken by a manufacturer to remove a defective product from the market that could potentially cause harm or does not meet regulatory standards. The recall process involves notifying customers and arranging for the return, repair, or replacement of the product. This corrective action can be initiated voluntarily by the manufacturer or mandated by government authorities, particularly when safety concerns are involved.
Recall Campaign
A coordinated advertising effort by a manufacturer to notify all owners of a particular product that it should be returned to the manufacturer. It can include mass-media advertising as well as direct mailings.

Accounting Terms Lexicon

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