buzzp:
"Am I understanding Canadas ways correctly that if I work for a company as a design engineer designing products for say consumers (to sell in Walmart, radio shack, etc), that I have to have my work signed by a PE?"
To be precise, the Law in Ontario (although similar, each Province is unique) states that anyone performing engineering must be licenced or have their work supervised by a licenced engineer. They then define engineering as:
["practice of professional engineering" means any act of designing, composing, evaluating, advising, reporting, directing or supervising wherein the safeguarding of life, health, property or the public welfare is concerned and that requires the application of engineering principles, but does not include practising as a natural scientist; ("exercice de la profession d'ingénieur"

] Professional Engineers Act, R.S.O 1990, Section 1 - Definitions.
So yes, if that product that they are designing can endanger the life, health, property or the public welfare. The only problem that we have is when the products have the engineering done elsewhere. A very good example of this is the Canadian auto industry. We build and sell cars that are engineered by non-licenced engineers, but if that design is modified when in production by someone in Canada (like a plant based design engineer) that engineering work must be supervised by a licenced engineer or else there is a violation of the law.
"The same thing goes in the states this is why they have insurance. On your second note (not duplicated here), there are plenty of other ways to shut down a bad design, contact the customer, etc. There is whistleblower protection in the states if you wish to go the route around your employer."
Yes there is whistleblower protection in the states, but it is not as strong as the Canadian system due to the lack of the mandatory licence. For example, if a company doubts an engineer's (call him EngA) decision in Canada, they can get the work reviewed by another engineer (EngB) to get them to approve it, but that second person is bound by a strickly enforced code of ethics. Say EngA is right. So EngB reviews this and approves it. EngA then reports EngB for misconduct and he is disciplined.
In the US, if EngC (non-licenced, but degreed and qualified for the job) reviews this and approves it, then the company can rightfully claim that they have pursued due diligence and had another qualified person review and approve the design because they are covered by and industrial exemption, even if the second person is wrong! So EngA can then use the whisleblower laws, and in the end a non-technical court will judge if EngA was right.
What if it isn't so clean cut. What if it was a judgement call of going with a 1.4 or a 1.6 factor of safety on something like then front end of a car at the cost of a several million dollars? Would it affect someone's life? If you made 3,000,000 of those cars it very well might! If you were EngA would you have more confidence going up against your employer in such a situation if you were going to be judged by a group of people who appreciate what a 1.4 factor of safety represents or a court of non-technical people? I know what sort of backing I would like to have.
Dave