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A product recall is a request to return to the maker a batch or an entire production run of a product, usually due to the discovery of safety issues. The recall is an effort to limit liability for corporate negligence (which can cause costly legal penalties) and to improve or avoid damage to publicity. Recalls are costly to a company because they often entail replacing the recalled product or paying for damages caused in use, albeit possibly less costly than indirect cost following damages to brand name and reduced trust in the manufacturer.
A good example is the recent recall of over 500,000 Toyota Tundra pickup trucks. The Tundra had a steering problem which resulted in several accidents, forcing the manufacturer to attempt to right the problem.
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