Question

A major US toy manufacturer which suffered a breakdown in supply chain from China on account of legally unacceptable toxic substances in its products is

• A. Leo Toys
• B. Mattel Toys
• C. Universal Toys
• D. Funskool Toys

Hint:

Think of the maker of Barbie and Fisher-Price toys that recalled millions of China-made products over lead paint in 2007.

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
We need to identify which major US toy company had a supply-chain crisis in 2007 tied to unsafe, toxic materials used by its Chinese manufacturing partners.

Step 2: Key Formula or Approach:
Recall recent (as of 2007) major consumer-safety recalls reported in business news. The scale of the recall, millions of units, and the specific defect, lead-based paint, are the two clues that should point to one well-known name.

Step 3: Detailed Explanation:
Mattel Inc., the company behind Barbie dolls and Fisher-Price toys, discovered in 2007 that several of its Chinese contract factories had used paint containing lead, a substance banned in children's toys under US law because of its toxicity. Mattel had to pull millions of toys off shelves across multiple recalls that year, and a separate issue involving small magnets added to the crisis. This event severely damaged trust in Mattel's outsourced manufacturing process in China. None of the other three names, Leo Toys, Universal Toys, or Funskool Toys, match this scale or this specific 2007 event; Funskool is in fact an Indian company, not American.

Step 4: Final Answer:
The toy company that suffered this supply-chain breakdown due to toxic substances is Mattel Toys, option (B).