APICS Certified Supply Chain Professional (CSCP) — Question 312

A company returned several shipments of contaminated raw material. Which risk classification best describes this event?

Answer options

• A. Supply
• B. Product liability
• C. Business continuity
• D. Environmental

Correct answer: B

Explanation

The correct answer is B, Product liability, as the situation involves the liability associated with defective products that can harm consumers. The other options do not directly relate to the legal responsibilities arising from the contaminated materials; Supply refers to the sourcing process, Business continuity pertains to maintaining operations during disruptions, and Environmental involves ecological impacts.