Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Product Liability
Document related concepts
no text concepts found
Transcript
Product Liability Jacob Bervig Donny Moberley Steve Staskiewicz Introduction Competition causes premature release of products. Technical complexity has increased severity and frequency of injuries. 50 million product accidents a year. Annual cost of $50 billion. Introduction Cont…. Jury verdicts favor injured party. Sympathy vote. Manufacturers try to presume these costs and pass it on to the customer. Smaller companies forced into bankruptcy. Introduction Cont…. Three main reasons for product injuries – Behavior or knowledge of product user. – Environment – Designed poorly, defective. Introduction Cont…. Companies can not totally account for behavior or knowledge. Safety and quality must be engineered into the product. Manufacturers are able to see safest design better than product user. History Grain producers were held liable for quality in ancient times. Quality was based on one sample. By fourteenth century textile sampling was common. Seals and official stamps were used. History Cont... In the fourteenth century there product lawsuits. By the middle of the eighteenth century there were two concepts. – Caveat emptor (Let the buyer beware) – Privity of contract History Cont... 1916 MacPherson V. Buick Buick held negligent by failing to inspect defective wheel from supplier. Ended privity of contract and buyer beware. Product Safety Laws Consumer Product Safety Act of 1972. Protect public against unreasonable injury. Assist in comparing safety of products. Develop uniform safety standards. Promote research and investigate product safety. Product Safety Laws Many states and municipalities have their own laws. Similar laws – Refrigerator Safety Act – Flammable Fabrics Act Exempted Products Cars Boats Airplanes Food Drugs Cosmetics Tobacco and Poisons. Product Liability Laws Plantiff must prove causation in every case. 51% likely to have caused the injury. Proving defectiveness is the heart of most court cases. Warranties help limit liability. Defenses Negligence Assumption of risk Misuse Statutes of Repose (useful life) 8,10, or 12 years. Financial Loss Defendant losses more than money. Costs – Recalls, replacements, reputation, production delays, quality. The Future Asbestos, Dalkon shield, and Bendectin grow 4% each year. Synthetic and toxic products. Europe adopting strict liability laws. Prevention Program Organization New-Product Review Initial Production Review Periodic Production Audits Control of Warranties, Advertisements, Agreements, etc. Warning Labels/Instructions Complains/Claims Retention of Records Product Recall Plan Organizational Structure Dependent on size & talents Specify responsibilities Necessary authority Product-safety committee -Legal -Marketing -Design -Quality -Manufacturing -Safety engineer New-Product Review Prototype First & least expensive Consumer safety first – Function, cost, sales appeal second Will product work under conditions that: 1. Are adverse 2. Have been considered abusive 3. A plaintiff’s attorney will consider foreseeable Product Review Team Product Review Team No preconceived notions about product Evaluate product’s compliance with: 1. 2. 3. 4. present and foreseeable standards Applicable codes, laws, and regulations Consumer requirements and anticipated use Past injury data Crushing hazards Shearing hazards Cutting hazards Entanglement haz. Drawing-in hazards Trapping hazards Impact hazards Puncture hazards Abrasion hazards Exposed live part Thermo hazards Noise hazards Exposure hazards Fire hazards Explosion hazards Unexpected startup hazards Electrostatic exposure Initial Production Review First production items Limited production run Determine adequacy of factors Warranties, Advertisements, Agreements Terms & conditions are limited to statement of merchantability Legalists analyze all advertising Special warranty provisions? Analysis of dealer distributorship/franchise agreement of “defective” items Nonconformity (unit) Evaluation of cost problems of warranties Warning labels/Instructions Inadequate/nonexistent = negligence Engineers are a no go Symbols and pictures Warning calls attention to danger Instructions prescribe procedures Complaints/Claims Product safety engineer – – – – – Cause of complaint Nature & seriousness of complain Failure mode Age of defect, present when sold? Negligence of parties The quicker the better Retention of Records Shipment, operator, machine, time, etc. Expected useful life of product plus 18 years. Other considerations… Product-Recall plan Customer Service Redress
