Description: Electronics retailer Best Buy is recalling one million pressure cookers after 17 customers have experienced burns. Best Buy will not provide replacements or refunds if your return the item to the store. Rather, the company insists consumers register online to receive satisfaction.
Date: October 27, 2023
1) Have you ever had a consumer item that was recalled due to a safety issue?
2) If you were a senior financial officer at a company in a situation like this, how would you advise management to proceed?
3) In chapter five of Wiley’s Financial Accounting: Tools for Business Decision-Making we saw a discussion on refund liabilities. On page 10-10 we see a discussion of a particular provision that would be germane to Best Buys. What is the example given there?