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Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
Safety Management Chapter 9
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Safety Management Chapter 9

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  • 1. Chapter 9 - Product Safety and Liability tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 2. Chapter 9 - Product Safety and Liability • The U.S. has become the most litigious industrialized country in the world. – With approximately 70% of the world’s attorneys. • Product manufacturers are being sued in large numbers by users, misusers, and even abusers. – These suits cost industry millions of dollars each year. • The best way a manufacturer can prevent/defend claims is by making a reasonably safe, reliable product & providing instructions for proper use. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 3. Chapter 9 - Product Safety and Liability PRODUCT LIABILITY AND THE LAW • Prior to 1916, consumers and employees used products and machines at their own risk. – If injured while using a manufacturer’s product, a person had no legal recourse. • In 1916, the concept of negligent manufacture was established in the law. – Since then, concepts of breach of warranty and strict liability in tort have also been added to the body of law relating to product safety and product liability. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 4. Chapter 9 - Product Safety and Liability Lawsuit Process • Typically, product liability lawsuits fall within the realm of civil law. – Such suits do not involve criminal charges—rather, they involve one party seeking monetary redress from another. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 5. Chapter 9 - Product Safety and Liability History of Product Liability Law • Until 1960, manufacturers were not held liable. – Unless they produced flagrantly dangerous products. • Nonliability, established in 1842 in English courts, persisted in the U.S until the turn of the century. – Four landmark cases have established what is still the foundation of product liability law in the U.S. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 6. Chapter 9 - Product Safety and Liability MacPherson v. Buick Motor Company • This case established the concept of negligent manufacture. – The maker of a product can be held liable for its performance from a safety & health perspective. • While driving a Buick car, MacPherson lost control and was injured in the resulting accident. – The cause of the accident was a defective wheel, and the courts ruled in MacPherson’s favor. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 7. Chapter 9 - Product Safety and Liability Henningson v. Bloomfield Motors Inc. • This case… – Established the concept of breach of warranty. – Broadened manufacturer liability to include people without contractual agreements with the manufacturer. – Limited protection manufacturers could derive from using disclaimers with their products. • Henningson purchased a new car for his wife, who was involved in an accident while driving it, due to a defective steering system. – The car was damaged to such an extent that negligent manufacture could not be proven. – Mrs. Henningson had no contractual agreement with the manufacturer, as Mr. Henningson had made the purchase. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 8. Chapter 9 - Product Safety and Liability Greenman v Yuba Products Inc. • This case established the concepts of strict liability in tort and negligent design. • Greenman sued Yuba Products Inc. after being injured while using a lathe in the prescribed manner. – His attorneys argued that the lathe’s design was defective and that a breach of warranty had occurred. – In finding in Greenman’s favor, the court broadened the concept of negligent manufacture to include design of the product. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 9. Chapter 9 - Product Safety and Liability Van der Mark v. Ford Motor Company • This case confirmed the concepts established in Greenman v. Yuba Products Inc. • Van der Mark sued Ford Motor Company when his new car was destroyed because of a defective braking system. – In finding for Van der Mark, the Supreme Court overturned a lower court decision against him. • Thereby confirming the concept of negligent design. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 10. Chapter 9 - Product Safety and Liability Strict Liability in Tort • Paragraph 402A of the Second Restatement of Torts (American Law Institute) reads, in part: – One who sells any product in a defective condition …is subject to liability for physical harm …if: • The seller is engaged in the business of selling such a product. • It is expected to, and does reach the user or consumer without substantial change in the condition in which it is sold. – The rule stated in Subsection (1) applies although: • The seller has exercised all possible care in preparation and sale of his product. • The user or consumer has not bought the product from, or entered into any contractual relation with the seller. • This definition of strict liability has become the standard and is used in the courts of most states. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 11. Chapter 9 - Product Safety and Liability Strict Liability in Tort • Tort law also includes the concept of duty to warn. – The reason for warning labels on so many consumer products, particularly those made for children. • Paragraph 388 of the Second Restatement of Torts established the following criteria for determining whether a duty to warn exists: – Potential for an accident when the product is used without a warning, provided the use to which it is put is reasonably predictable. – Probable seriousness of injuries if an accident does occur. – Potential positive effectiveness & feasibility of a warning. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 12. Chapter 9 - Product Safety and Liability Statutory Product Liability Laws • The Consumer Product Safety Act—with which Ralph Nader is closely associated—has the most direct application to product liability. – To protect the public from the risk of injuries incurred while using consumer products. – To help consumers make objective evaluations of the risks associated with using consumer products. – To encourage uniformity in standards & regulations, and minimize conflicts among regulations. – To encourage research into causes of product-related injuries, health problems & deaths, and how these can be prevented. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 13. Chapter 9 - Product Safety and Liability Applying Product Liability Laws • To recover damages in a product liability case, a person must satisfy the burden of proof by meeting certain criteria, as shown. Several important legal concepts are used to apply these criteria: Patent defect, latent defect, prudent man concept. Reasonable and unreasonable risk. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 14. Chapter 9 - Product Safety and Liability Applying Product Liability Laws • A patent defect is one that occurs in all items in a manufactured batch, and sometimes result in product recalls. • A latent defect occurs in only one or a limited number of copies in a batch. • A key concept in product liability cases is the concept of unreasonable risk. – In determining whether risk is reasonable or unreasonable, the prudent man concept is applied. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 15. Chapter 9 - Product Safety and Liability Applying Product Liability Laws • A reasonable risk exists when consumers… – – – – Understand risk. Evaluate the level of risk. Know how to deal with the risk. Accept the risk based on reasonable risk benefit considerations. • In other words, they behave prudently. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 16. Chapter 9 - Product Safety and Liability Applying Product Liability Laws • An unreasonable risk exists when consumers… – Are not aware that a risk exists. – Are not able to judge adequately the degree of risk, even when they are aware of it. – Are not able to deal with the risk, and the risk could be eliminated at a cost that would not price the product out of the market. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 17. Chapter 9 - Product Safety and Liability Community Right-to-Know Act • The Community Right-to-Know Act gives people the right to obtain information on hazardous chemicals being used in their communities. – It applies to all companies that make, transport, store, distribute, or use chemicals. • The act has four main components: – – – – tab Emergency planning. Emergency notification. Reporting requirements. Toxic chemical release reporting. Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 18. Chapter 9 - Product Safety and Liability DEVELOPING A PRODUCT SAFETY PROGRAM • The purpose of a product safety program is to limit a company’s exposure to product liability litigation and related problems—as much as possible. – The key to limiting liability exposure is to develop and maintain a comprehensive product safety program. • At a minimum, the program should have three functional components: – Product safety coordinator, product safety committee, and product safety auditor. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 19. Chapter 9 - Product Safety and Liability EVALUATING A PRODUCT SAFETY PROGRAM • The product safety auditor evaluates the program continually to identify and recommend corrections to the causes of product liability problems. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 20. Chapter 9 - Product Safety and Liability ROLE OF THE SAFETY/HEALTH PROFESSIONAL • There is no set rule for the role played by safety & health professionals in a product safety program. – In some cases, he/she is a member of the product safety committee, typically in large companies. – In others, he/she doubles as the product safety program coordinator, more often in smaller companies. – In yet other cases, he/she may be designated as the product safety auditor, in both large, and small companies. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 21. Chapter 9 - Product Safety and Liability QUALITY MANAGEMENT & PRODUCT SAFETY • It is widely accepted that the best way to limit liability exposure is to produce a quality product. – But what is a quality product? • One that meets/exceeds customer standards & expectations. • An inherent expectation is that the product, if used properly, will cause no health or safety problems. • Quality management (QM) can be an effective way to ensure a company’s products consistently meet or exceed customer standards and expectations. – Reducing the company’s exposure to product liability. • Management using QM means expecting total and willing commitment to quality by all personnel. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 22. Chapter 9 - Product Safety and Liability QUALITY MANAGEMENT & PRODUCT SAFETY • QM is not just a superficial quick-fix program puffed up by catchy slogans but lacking in substance. – It requires a complete change in a company’s culture and management philosophy. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 23. Chapter 9 - Product Safety and Liability QUALITY MANAGEMENT & PRODUCT SAFETY • In a QM setting, teamwork is engendered through five key strategies: – Involvement of all personnel who must implement decisions, in making those decisions. – Empowerment of all personnel to take action necessary to bring about product &process improvements in their areas, and to recommend action outside of their areas. – Communication, both vertically and horizontally, on a continual basis—supervisors and managers must listen. – Reinforcement of teamwork-oriented behavior and product and process improvements. – Respect for the dignity and worth of all team members, regardless of status. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 24. Chapter 9 - Product Safety and Liability PRODUCT SAFETY PROGRAM RECORD KEEPING • Despite a company’s best efforts, it may still have to defend itself in a product safety lawsuit. – It is critical to produce records to support its defense. • Complete, accurate records can be very convincing in court. • Records should be retained pertinent to all phases of manufacturing, distributing & importing activities. – From procurement of raw materials & components, through production & testing, to marketing & distribution. • As there is no way to know when the records may be needed as evidence in a lawsuit, the only way to be sure that they are retained long enough is to retain them forever. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 25. Chapter 9 - Product Safety and Liability USER FEEDBACK COLLECTION & ANALYSIS • Collection & analysis of user feedback from users of is critical to the success of a product safety program. – Compliments, testimonials, complaints, problems, or accident reports. • Such feedback can help identify modifications that should be made in a product’s design, problems with manufacturing processes, need for a recall, and potential lawsuits. • Regardless of collection method, it is important to have one central location into which feedback flows. – Based on information acquired, a company must be able to determine immediately if a substantial hazard exists. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 26. Chapter 9 - Product Safety and Liability PRODUCT LITERATURE AND SAFETY • Product literature—key in product safety management—includes assembly/operating instructions, warning labels & technical manuals. • It is not uncommon for product liability lawsuits to include charges relating to poor product literature. – From a legal perspective, quality of product literature is as important as the quality of the product itself. • The proper role of safety instructions & warnings is to tell users about hazards that cannot be removed by design or controlled by guards & safety devices. – A secondary role is to disclose a product’s intended use, if self-evident, as well as recount safety features & guards. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 27. Chapter 9 - Product Safety and Liability PRODUCT LITERATURE AND SAFETY • Strategies for effective product literature: – Minimize and simplify narrative text. • Text should consist of short, simple words and sentences written at a reading level below that of the intended audience. – Use illustrations whenever possible. • Tables, charts, graphs, flowcharts, photographs, & drawings, should be used instead of narrative text when possible. – Consider the eye appeal of the layout. • • • • Do not justify (line up) right-hand margins of text material. Use boldface print or underlining for short passages only. Avoid reverse print except for short passages. Use blue, black, green, or purple ink for single-color printing. – Maximize drawing power. • Produce literature that compels the reader to read it. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 28. Chapter 9 - Product Safety and Liability PRODUCT RECALLS & SAFETY PROFESSIONALS • Product recalls are an unfortunate fact of life today. – Some argue that increases in product recalls are the result of poor quality in manufacturing. • Others blame the litigious nature of modern society. • Safety & health professionals need to be prepared to be a part of the crisis management team every manufacturing company should have in place to deal with this issue should it arise. • When a company learns that one of its products has caused harm to one or more of its customers, it needs to take swift action to prevent future harm to its consumers and to salvage its brand name tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 29. Chapter 9 - Product Safety and Liability THE SAFETY & HEALTH PROFESSIONAL’S ROLE • In addition to helping prevent the problems that can lead to recalls, safety & health professionals should: – Know the mandatory notification requirements of any government agencies that regulate the product in question. – Be prepared to advise higher management concerning whether or not a product recall is warranted. • As a member of the company’s crisis management team. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 30. Chapter 9 - Product Safety and Liability GOVERNMENT REGULATORY AGENCIES • Safety & health professionals should know which government agencies regulate their products, if any. – What the regulations are. – How the company meets those regulations. – When & how the company is required to provide notification of a product recall. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 31. Chapter 9 - Product Safety and Liability ADVISING HIGHER MANAGEMENT ON RECALLS • Product recalls are always expensive. – There is the cost of recalling the product itself. – There are the potential costs of not recalling the product. • In product recall situations, the right decision is one that achieves the following results: – Protect the company’s consumers—including intermediate consumers who use your product in theirs. – Reduce the risks associated with litigation. – Preserve the company’s reputation and, in turn, customer base. tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458
  • 32. Chapter 9 - Product Safety and Liability END tab Occupational Safety & Health for Technologists, Engineers, and Managers By David L. Goetsch © 2011, 2008, 2005, 2002, 1999 Pearson Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458

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