Question

Because there is such a short amount of time between the release of each next new product, the Quality and Assurance department cannot perform every possible test on the servers to ensure they are defect free. Rachel will not ship a product if there is any possibility that the server could malfunction and cause physical harm to the customer. However, she will ship a product that has a higher likelihood of failure resulting in data loss for the customer, because she knows that if she doesn't, her company's competitor will.

Answer 1

Rachel is a quality assurance engineer who is
responsible for final testing of the servers shipped. But since every 6 months, new servers are released, she has a limited time to do the quality tests.

So, to do the business ethically, the Rachel should ask for more employees to help her conduct every possible test in time so as to deliver error free server to the clients. This will increase the productivity and reduce the errors. But in doing so company has to bear the extra cost of added employees. So, ideally the company should appoint more people under Rachel to support her.

To ship a product with known defects, the time can be determined only by seeing client's urgency, i.e. if there is no time available to client or he can't wait more, so then the server with known defects should be shipped.
But ethically this should be done after analyzing that it won't create any problem for clients, otherwise the product shouldn't be shipped as that would be ethically wrong and immoral.