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Lawsuit!: Reducing the Risk of Product Liability for Manufacturers by Randall L. Goodden

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13

Post Sale Duties to Warn and Recalls

Facing a potential recall of a large number of products is probably the next worst experience short of a product liability lawsuit. Recalls can be devastating and the expense has put companies that have been operating for many decades out of business. Unfortunately all it takes is an oversight or error in the design review phase, manufacturing, supplier control, or management discretion, and the company could face an overwhelming disaster.

Aside from a comprehensive upfront new product development procedure that includes adequate testing, one of the biggest mistakes is for a company not to have a recall plan or procedure in place, nor anyone assigned to spearheading this area of concern. The most efficient and effective severe storm disaster plan would not be created at the point the shingles are being blown off the building, but that will unfortunately be the point where many companies will first begin to address the issue. Although the primary objective of new product development is to eliminate or minimize the potential for product failure, it is a major mistake for the management team not to incorporate into the design provisions for identifying and tracking component parts as well as the final products produced in the event of a potential recall.

Recall preparedness has become such an important factor that some of the leading insurance companies will not insure manufacturers if they find the manufacturer does not have a formal recall ...

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