1. Crisis Management MALATHI SUNDARRAJ LEGAL DEPARTMENT

2. Index • Consumer Laws and Motor Industry • Product Safety and Product Liability • Reasons why it is important for a company to ensure that its products are safe • Product Compliance Check • Crisis Management • Legal Dos and Don'ts • Conclusion Next

3. Consumer Laws and Motor Industry • Motor car is an important consumer product and so long as it stays that way, the motor industry will come under close scrutiny in consumer protection. • Consumer protection laws do not just involve consumers taking action privately against retailers and manufacturers; they can also involve criminal penalties if the rules are broken. Home Next

4. Product Safety and Product Liability Private Action Person who have been injured by defective productscan bring claims for damages against the manufacturer or importer directly. A product will be defective where it does not provide the safety which a person is entitled to expect, taking all the circumstances in accordance, including: • Presentation of the product • The use to which it could reasonably be expected that the product would be put. • The time when the product was put into circulation. (contd..) Prev Home Next

5. Product Safety and Product Liability Whether a product is defective or not depends on factors such as: Product information and warnings supplied with or for the product, its labelling, information and data sheet, marketing material and statements by sales representative. (contd..) Prev Home Next

6. Product Safety and Product Liability Criminal Actions • Corporate manslaughter • Health and Safety Act (contd..) Prev Home Next

7. Product Safety and Product Liability Prev Home Next

8. Reasons why it is important for a company to ensure that its products are safe • Firstly, to reduce the risks to its commercial reputation which can have adverse effect on sales. • Secondly, there might be a risk of prosecution or other regulatory action. • Thirdly, powers to cease and remove products from the market. • Finally there is the risk of a private action being brought against a liability risk. Prev Home Next

9. Product Compliance Check • Does the company have a system to handle customer enquiries and complaints? If so, could it be improved? • Are the staffs trained? • Does the company have a policy of recovering allegedly unsafe items and investigating and recording the items and the circumstances? • Is there a systematic review of adverse incident information involving multi-disciplinary input from different departments? • Can the company identify repeat claimants who may not be genuine? Prev Home Next

10. Crisis Management Multi- disciplinary management team • Members of the team should reflect the areas of expertise of the company so that all types of allegations can be expressed by someone knowledgeable about them. • Contact details must be regularly updated and office space made available for the team. (contd…) Prev Home Next

11. Crisis Management Functions: • A detailed plan and arrangement. • Facilitates, support function and fall back arrangements. • Involvement of all relevant departments or disciplines. • A central committee, with chair and secretary, isolated from normal management functions. • Training and practical experience. • Company procedures for dealing with the media. Prev Home Next

12. Legal Dos and Don'ts • Inspect evidence/products ASAP on the scene. • Neutral Clothing. • Brief Technical Expert/lawyer to assist in relation to evidence. • Do not allow third parties to inspect without fiat representative. • Ensure that the staffs do not discuss with any third parties especially the media except for a designated person. Prev Home Next

13. To Conclude The following is a list of steps a company can take to prepare for handling any crisis: • Educate your employees. • Draw up a code of conduct. • Establish relationships with external professionals. • Establish a crisis management team. • Cultivate media. Prev Home Next

14. Thank You Home