You are the CFO for a small firm that makes kitchen appliances.

You are the CFO for a small firm that makes kitchen appliances. While conducting field tests, your company discovers a design flaw in one of your most popular models that will likely cause the death of one or two consumers. Your company’s lawyers tell you that you can quietly pay off the families for a very low amount – most of which will be covered by your existing product liability insurance policy. The cost of a product recall and a design fix, however, will be exorbitantly expensive to the point that it will likely bankrupt your company, force you to lay off every employee, and also put you out of a job.

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