Case study

Answer in detail:
Q1: Is this an ethical way to conduct business?
Q2:How should she determine when to ship a product with known defects?

Rachel works as a Quality Assurance Engineer at a large electronics company. She is responsible
for the final testing of her company’s servers and is part of a team which decides when new
products will be shipped to distributors for sale.
Rachel’s company has a contract with another company which makes the chips which are
incorporated into the servers Rachel’s company makes. The business model for this product is to
release a new generation server approximately every six months, meaning Rachel has a limited
timeframe to conduct her Quality Control tests.
Because there is such a short amount of time between the releases of each next new product, the
Quality and Assurance department cannot perform every possible test on the servers to ensure they
are defect free. Rachel will not ship a product if there is any possibility that the server could
malfunction and cause physical harm to the customer. However, she will ship a product that has a
higher likelihood of failure resulting in data loss for the customer, because she knows that if she
doesn't, her company's competitor will.

1 answer

The competitor will ship a product with a "higher likelihood of failure"?
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