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Suppose a manufacturer produces a computer chip and later discovers a flaw in its design. Suppose further that the manufacturer corrects the flaw in future production but decides to keep the original flaw a secret and does not recall the chips already shipped, reasoning that none of the chips already in use are being used in an application in which the flaw will have consequences. Is anyone hurt by the manufacturer’s decision? Is the manufacturer’s decision justified if no one is hurt and the decision keeps the manufacturer from loosing money and possibly having to layoff employees?
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