Paranhute tquipment Industry fissuuiatiun - Parachute Industry ...

THE WALL STRTET jOURNA| WEDNESDAY, AUCUS-T 6. l9S0
B€htnd eYery succestul muuJac'
nrer the* days ls a 8wl lawyer. The
muky evoluuon ot producl UablltY
law hs sent corporate muageF
scwying t! $e most recent law E-
ports. engln€eE back to tJIe drawlng
board to try (or th€ lneYllably el6iYe
riskles puluc! Md the c6t ol Prod'
uct tlablllty ksurilce often pNtubl'
Uvely hitlL Now the Comerce De
panment ud Congres m l@king
lnio ways lo reveE the lrerd tiat be'
gm ln the mld'19?0s toward lncreased
buenl ou muulactureE,
The prcblem is one tiat afists nol
{nly |mulactureF and tnsuren, but
coromen u well. TheY are, alter L.,
tle mE who pay Ngher Pnc6 e
lheir more lrckless tellows maY b€
compeuted for ureunable Prod'
ucl usge. Cases ol judce M mok
are Wmu. There is, (or exmple,
tle Marylud !€enager who dmped
cologre on 8 li! cudle in order to grve
l! a eent sd collected dmages trcm
the perfume compMy becN lt
didn't wm b€r about the tlre she
cals€d Or Oe Oklaioms man who rb
ceived t6o0,tjoo frcm a glue muuJac'
twr evcn though he lailed to hetd
n&mmabrllty warnlnEs. The walrug
on the glue cu ca.lled for oPeMg w'
dos. bul because ihere were none to
open ln tie mu'i workmmr he won
dffigts lor hls burN.
Ar wlti ouer tons. tlabillty ln
product css ls d€terrued In slate
couis, slng stale PrecedentJ ud
statu(es to delermlne tie causaCion ol
h&n JwE eslabllsh comparatiYe
negligcnce levels ud deterrue lie
a|]lMl ol dmages.
when courts in states such tr Cturfoma
b€tu swltchtng tie burd€n of
proof to t}e muulacturlng de(€ndut
ud awudug huge suru to Pldntlfts,
Ind6try ws hr! wlth rapldly nslng In'
suruce rats lot its products For
may muujacturers, insurMce lncreffi
n t}Ie thousuds ol P€rceol
have be€n common, ild gtne have
be€n unable lo llnd msure6 (or new,
untried products. The House ln MNh
pased a biU tha! would allow comPd'
ni6 to pool money and ulormabon to
lnMe theruelvcs against liablliry
The S€nate h now considenng the
meuult.
The mre fundamenial problem
Risky Business
isn't lrEurMce, but relormlng tie l8w
One opnon ls !o ajlow tle states tro
ontinue *ttlng thelr om standilds
ol llablllry, But tn Pemylvsflla. Colq
rado ud WNhintlon, tle notlon thal
mmuJacture6 should be held abglufely
llable despite user rtrklesne$
hd become tirnly enhenched: Mtil
several more states tending ln tial dl'
rrcdorL a more logical lorl system
seru ulilely !o come lrcm the
states &tlng Independently. A second
way k for Ule lederal tDvemenl lo
foc 8 uilorm system otr ue states,
a pmposaj tor vblch wlll be on the
Itos agenda alter the convention
bEak. A thlrd ElternadYe ls !o prcvide
stales sLh a model code relorming
the ror! l8w that tIeY cu adoPt N
they plee.
The tilrd !ek, whlch hs tie ad'
vutr8t ol learing much ltral respon'
slbrlry for tor! law, k tle one lalen
by the Co|merce Depulnenf s UnJ'
lom Prcduct UabilltY Act. TNs cole
atrempB prcperly o blme tile Part,
in the befter position to avold the dm'
a8t lts m61 sltnlllcill stloB
would establlsh standuds ol respoNl'
brlity (or muulacturers ln lhe four
m6t hequent types of defKt cNs. In
tm rypes o, cla.lms muulrclureE
wou.ld be ln partlculilly hot water:
the involvtrg constructlon delrcts
that result ln a mismuulactured ltem
ard tho* lovolrug breach ol u erpEs
wffiMty The ldea here ls that
selle$ should b€ exp€cted !o male &
coEistent product and to llve up to a
pmre made sbout thelr Prodwt.
But the buyer would have to bewue
In cus lnvolving dcf(ls ln entlre
product Lne deslgl ud lailures of
mmulactureE to warn abou( potential
dug€6. TNs laull stildard wodd not
create a (olal lnhlbitlon on pruluclng
new oroducts that are ued in lnierenUy
dugergus actlviries nor would
lillure to wam 8bout, say, dl€ du'
de6 ol swallowlng oPen saJery pms es'
tablrsh producer lault.
Whchever meliod o( reforrug the
lort law is chosn, tie lmPortilt 0ung
lo Rmemb€r is tlat rlsk i5 lnet'ltable
Tfus is especla.lly so ln 8 slefy in
wluch lnnovauon is not 8 luxury, Dut
the bread Md butter ol our tronomy.
The law should reflcct lhe reallry that
a flskless strrery ls a chlmera.