Re: Servicing Second Hand Modules - Legal Issues
2008-07-25 by drmabuce
--- In wiardgroup@yahoogroups.com, "xartdigital" <xartdigital@...> wrote: > > > > However, legal liability can arise from innocent seeming actions. > Take the matter of > > replacing older faceplates with newer ones. This seems a very > innocent request, but can > > create a legal liability problem for myself and/or Wiard. > > Grant - Start putting serial numbers or Date of Manufacture on them. > This is how every other business get around this issue. > The issue of Grant's demurring from factory rework seems to keep resurfacing. My day job is in the field of high value vehicle hardware and so i'll add my two-cents. Referencing what i'm sure was xartdigital's well-meaning comment. i'd like to rejoin that through my business' experience i have seen firsthand that serial numbering (mfr lot etc.) systems , even when implemented at the component level do not mitigate the risk of accessory to fraud (civil) prosecution . It's true that lawyers can (and do) sue anybody for anything, but the real issue is whether they do so successfully . We deal with some ultra-fancy car dealers in the UK and we observed that we were selling them Rolls Royce fasteners. We did so because Rolls Royce hires these dealers to install Rolls Royce parts on Rolls Royce cars. The dealers order the parts from -us -(in the USA- we import them from Rolls Royce in Goodwood) We then export them back to the UK! Needless to say a lot of middlemen make money on this. The reason for this absurd choreography is that Rolls Royce has been successfully sued on multiple occasions for doing what they considered a service for their customers; the by-product of which was that the vehicle's perceived value increased and the buyer claimed that he was defrauded when he discovered that (ie) what he believed was a 2005 phantom was a 2004 phantom with 2005 door panels. Further R.R. marked all reworked parts with an engraved dash number and appended a description of the rework to the vehicles online factory `pedigree' . They were sued successfully anyway. Yes, it's absurd but it happens and rest assured every last component of those machines are numbered with lot and serials. It gets better if the original owner has the work done (even with all genuine R.R. parts) by a third party. Then there is no tort. The byzantine reasoning behind this is that a factory `upgrade' imparts the perception of genuine provenance where the third-party upgrade does not. It sounds like a Samuel Becket play! But it's worked in court. We ourselves questioned their sanity when they wanted us to re-export parts back to the UK but they assured us it was more than worth our (pretty steep) markup to do it this way. And R.R. is only one instance among other cases we've seen in automotive and aviation markets and anything else wherein a finished product garners a collectible status. My observation is that this is especially true when rework involves parts that are easily visible. Now i realize that there's a hell of difference in scale between R.R. Phantoms and Wiard 300's (so far) but even the necessity of a legal consultation fee could damage the cash flow of a one-man show like Wiard. It's regrettable that the litigious mindset has imposed these risks but the risks are real, i've seen them firsthand and serial numbers are not an effective defense when a legally aggressive buyer can show the original manufacturer to be `complicit' in rework