Product Liability: Beyond Loss Control–An Argument for Quality Assurance

Abstract

Companies should be diligent in examining the relationship of product liability claims and effective quality assurance programs. A review of the literature suggests there are many writings about the mechanics of a product liability case, but very little hard evidence to suggest that companies are saving money because of implemented quality initiatives. While liability in this arena is usually borne by an injury that is due to a defect in either design, manufacturing, or marketing materials, suits are generally filed under three broad categories: negligence, breach of warranty, or strict tort liability. Properly implemented quality assurance initiatives will serve a company by tracking all aspects of the operation, from design to packaging, in order to determine where waste and defects are occurring. The courts are looking for this documentation, as well as how negative discoveries are handled in a company's quality management system. Since the courts are looking beyond a simple defect to determine a company's methodology for handling problems, effective quality systems must exist to demonstrate the exercise of due diligence. They also serve as documentation controllers that disallow “smoking guns” (internal or external communiqué) from becoming financial liabilities.

• compliance
• liability
• litigation
• management
• quality

Additional information

Notes on contributors

Thomas C. Boehm

Thomas C. Boehm is an environmental specialist with the Metropolitan St. Louis Sewer District. He completed his master of science degree in industrial management in 2006 at the University of Central Missouri at Warrensburg Missouri.

Jeffrey M. Ulmer

Jeffrey M. Ulmer is an assistant professor of industrial technology and industrial management at the University of Central Missouri in Warrensburg, Missouri. He teaches both undergraduate and graduate students, and is currently working on his doctoral dissertation with a focus on the effectiveness of lean manufacturing on small and large organizations. Ulmer is a certified manager of quality/organizational excellence with the American Society for Quality. He is also a trained Lean Six Sigma Black Belt (from the Regal-Beloit Corporation). He has worked for 25 years in industry in the areas of product engineering, quality assurance/control, and production management.