The Doughnut Dock is a well known doughnut shop in Clearwate…
The Doughnut Dock is a well known doughnut shop in Clearwater, FL. One morning, several customers find bits of metal in their doughnuts due to a broken mixer blade; and one customer sustains a massive cut on their tongue due to a sharp strand of metal in their donut. The customer files a product liability lawsuit against The Doughnut Dock for selling a “negligently made” product. The customers in the store at the time post the incident on social media, and the hashtag #DangerousDoughnuts starts to trend on Twitter (or X). The Doughnut Dock sees an immediate collapse in customers, and for an entire week, almost no customers visit their store. From the perspective of the Doughnut Dock, what type of risk is the underlined portion of the above scenario an example of?