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If you sell me a defective product, I'd expect some restitution, even if you in good faith told me the product was defective. A 10 million dollar fine is probab
by jjk166 5y ago
If you sell me a defective product, I'd expect some restitution, even if you in good faith told me the product was defective. A 10 million dollar fine is probably small compared to what the Navy will need to pay to deal with bad steel.
Had they not told the navy in good faith once they knew about the issue, the execs at the company would be facing jailtime just like the employee.
- scarmig 5y agoI'm sure that contractors have stiffed the Navy in bad faith in the past, and I'm also sure that most of the stiffing never resulted in penalties. But, yeah, of course there's a incentive and risk landscape that executives considered when choosing whether to report or not. I'm curious about that process and also the process by which the Navy determined the fine amount. Did they take into consideration how it'd affect the company's books and levy a fine that'd amount to a slap on the wrist?