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In July 2007 toy maker Mattel came under fire when one of its European retailers found lead paint on some Mattel toys manufactured in China. Mattel stopped operations at the factory that produced the toys, conducted an investigation, and eventually recalled 83 affected products. The case asks students to play the role of the General Counsel for Mattel, determine what questions to ask their client, and draft a press release to communicate to the public about the crisis. The problem fits in the general category of avoiding trouble or distributing losses that have already occurred.
Risk Averseness, Acting in the Shadow of the Law, Conflicts of Interest, SEC Regulations, Public Disclosure, Crisis Management
Geographic: United States, China, Europe
Industry: Consumer Goods, Toys
Event Year Begin: 2007
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