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Case from journal
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Reference no. NAC2435C
Published by: NACRA - North American Case Research Association
Published in: "The Case Research Journal", 2005
Length: 9 pages
Data source: Published sources

Abstract

Public opinion was turning against handguns, a product used in more than half of the 22,500 homicides in the United States in 1991. Wal-Mart, the nation''s largest retailer and a leading supplier of guns, had handgun sales of $29 million in 1992, with total firearm sales of close to $100 million. This substantial amount of business was jeopardized not only by changing attitudes toward guns, but also by the store''s exposure to legal liability as a result of negligent sales. In December 1993, Wal-Mart Chief Executive Officer, David Glass, learned that the store was being sued for negligence as a result of a handgun sale to a mentally ill man who brutally murdered his parents. In the same month, there were also two fatal shootings on Wal-Mart properties. Wal-Mart had a history of refusing to sell ''morally questionable products''. It also had a reputation for listening to its customers, some of whom wished to be able to buy guns at the store, while others were concerned about shopping for everyday items alongside people shopping for guns. Should Wal-Mart continue marketing handguns?

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Abstract

Public opinion was turning against handguns, a product used in more than half of the 22,500 homicides in the United States in 1991. Wal-Mart, the nation''s largest retailer and a leading supplier of guns, had handgun sales of $29 million in 1992, with total firearm sales of close to $100 million. This substantial amount of business was jeopardized not only by changing attitudes toward guns, but also by the store''s exposure to legal liability as a result of negligent sales. In December 1993, Wal-Mart Chief Executive Officer, David Glass, learned that the store was being sued for negligence as a result of a handgun sale to a mentally ill man who brutally murdered his parents. In the same month, there were also two fatal shootings on Wal-Mart properties. Wal-Mart had a history of refusing to sell ''morally questionable products''. It also had a reputation for listening to its customers, some of whom wished to be able to buy guns at the store, while others were concerned about shopping for everyday items alongside people shopping for guns. Should Wal-Mart continue marketing handguns?

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