It is no secret that controlling costs in today’s Automotive Industry is a must. Companies are employing smaller workforces to cut labor costs and are using real time ordering and supply to cut inventory surpluses and better manage supply costs. Consequently, companies are often scheduling their employees for work based on customer need, which can change dramatically by the day. For example, when demand is high employees are scheduled to work longer shifts, weekends, etc. It almost goes without saying that managing work schedules under the above conditions while satisfying customer needs and making a profit can be a challenging balance. So now let’s imagine an employer has scheduled all employees to work on Saturday in order to complete a customer’s order. One employee, however, requests to be off work so he/she can participate in a food drive organized by his/her church. What should the employer do? Could the request be protected under Title VII as a religious accommodation? Continue reading this entry
More and more recalls mean more and more product liability claims. Even without recalls, for companies in the Automotive Industry product liability claims are a way of life. So, what do you do to prevent such claims? Knowing that they are inevitable, what do you do to make sure that their impact is minimized?
When thinking of product liability claims, companies should definitely consider an ounce of prevention being worth much more than a pound of cure. Avoiding such claims can lead protect your brand, increase corporate goodwill, reduce legal fees and reduce claim costs. Not only that, but companies certainly have an ethical obligation to try to reduce defects, which reduces failures, which reduces product liability claims. Moreover, employee morale always suffers when a company finds itself improved when a company is not constantly fighting claims. Continue reading this entry
Disputes in the automotive supply chain often involve questions concerning warranties, warranty disclaimers, limitations on remedies and limitations on damages. Understanding the basics of warranty law is critical to managing and litigating these disputes. The starting point in most commercial cases involves analyzing the warranty given to the buyer by the seller when supplying automotive components. These include both express warranties and implied warranties under the Uniform Commercial Code (UCC). Express warranties arise from affirmations of fact by the seller and may be created by oral statements, advertisements, specifications, drawings, samples or models. Implied warranties under the UCC include the implied warranty of merchantability and the implied warranty of fitness for a particular purpose. Continue reading this entry
At the beginning of this year, the Dashboard Insights team made some predictions about issues suppliers would face in 2014. In fact, we even dedicated an entire white paper to the subject. Our thoughts were that suppliers would see a variety of legal issues this year, including:
- Issues relating to the U.S. Department of Justice and their aggressive criminal antitrust investigation of the auto parts industry
- Warranty litigation (we wrote a white paper on that too)
Many mass-market vehicles include sensors and cameras to assist motorists with parking and backing up, and some models even include lane change assist and smart cruise control to maintain a safe distance from traffic ahead. According to IHS Automotive, the demand for collision avoidance technology is predicted to nearly triple from $3.94 billion this year to $9.90 billion in 2020. Continue reading this entry