208:, a standard form of contract widely used in the construction industry, allows the contractor to rectify a defect at their own expense in place of the common law position, and obliges the client to allow the contractor appropriate access to undertake the rectification work. At the end of an agreed period, a defects certificate may be issued, which is intended either to certify that there are no patent defects, or to state any defects which remain outstanding.
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In the literature, the concept of product quality risk has not been fully investigated. Although
Zsidisin stated that quality risk includes the risk of producing unsafe products that can harm the consumer, even when these defects are caused by another firm or inherited from a sub-contractor. However,
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Inherent quality problems (i.e. raw materials / ingredients / production / logistics / packaging) in any of the supply members trigger a domino effect that spread through a multi-tier supply network. For this reason, it is hard for a network member to keep track of who did what, and when, to the
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final quality of the products. The product that a focal firm sells to the consumer comprises components made by the focal firm and the suppliers. When the product breaks down due to defects in either the firm’s component or the supplier’s component, the firm has to bear the consequences.
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was asked to undertake) or, where the contractor has designed the work, the construction not compliant with any applicable law or with a design for the work offered by the contractor and accepted by the
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Depending on the given jurisdiction, the failure of a consumer to read the available warnings may negate causation for purposes of a defective or inadequate warning claim in a product liability suit.
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focuses on the quality problems in the supply chain context rather in the manufacturing quality context. Tse and Tan (2009) identified the concept of "Product
Quality Risk in Supply Chain" (PQR) as:
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You will recall the original factory outlet concept was defined by slightly defective but perfectly usable goods sold directly to consumers straight from the factory store. Today this is a rarity.
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The product quality risk in global supply chain concept, though similar to "product harm crisis" (defined as defective or dangerous products) and "moral hazard problem" (defined as the outcome of
57:, where the term is applied to "anything that renders the product not reasonably safe". The field of law that addresses injuries caused by defective products is called
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discovers that a line of shirts have been made with slightly uneven sleeves, the manufacturer may choose to sell these shirts at a discount, often through an
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if it was incorrectly manufactured, for example if the wrong materials are used. A product may also be considered legally defective if it lacks appropriate
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In construction, defects include aspects of the constructed works which are not in accordance with the scope of the project (the work which the
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Product quality risk is an inherent part of the supply chain risks, with a tendency to comprise some or all of the risk elements, such as
168:, imperfect observability in supplier's quality), are not about the risk of product quality in a global supply chain context.
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A product that is defective in some way that does not render it dangerous might still be sold, with a
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cut off to indicate that the quality is not intended to reflect on the brand. For some products,
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should be put right by the client, who then sues the contractor for the costs of doing so. The
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357:"Impact of Product-Harm Crises on Brand Equity: The Moderating Role of Consumer Expectations"
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or on the client's behalf. They may be "patent defects", observable in practice during or on
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A wide range of circumstances can render a product defective. The product may have a
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price reflecting the defect. For example, where a clothing manufacturer's
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400:"Vendor Certification and Appraisal: Implications for Supplier Quality"
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287:"Managing product quality risk in a multi-tier global supply chain"
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Product defects arise most prominently in legal contexts regarding
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of dangers accompanying normal use or misuse of the product.
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Characteristic of a product which hinders its usability
461:, last updated 30 September 2020, accessed 8 May 2023.
435:, published 10 October 2017, accessed 29 April 2023.
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200:, a defect which results from the contractor's
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291:International Journal of Production Research
242:Writing and Designing Manuals and Warnings
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446:When is a defect not a Defect under NEC3?
355:Dawar, Niraj; Pillutla, Madan M. (2000).
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258:Cheap: The High Cost of Discount Culture
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326:"Managerial Perceptions of Supply Risk"
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285:Tse, Ying Kei; Tan, Kim Hua (2011).
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120:Product quality risk in supply chain
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161:have been thoroughly studied.
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433:Guide to construction defects
361:Journal of Marketing Research
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324:Zsidisin, George A. (2003).
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255:Shell, Ellen Ruppel (2009).
86:for its use, or appropriate
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373:10.1509/jmkr.37.2.215.18729
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34:is any characteristic of a
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457:Designing Buildings Wiki,
429:Simmons & Simmons LLP
396:Radhakrishnan, Sarvepalli
448:, accessed 8 May 2023.
416:10.1287/mnsc.1060.0557
166:asymmetric information
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153:neither PQR nor its
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459:Defects certificate
478:Quality management
404:Management Science
202:breach of contract
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