Nationwide recalls present unique challenges for product manufacturers and the attorneys who represent them. Removing millions of vehicles from the garages of once loyal customers can place a tremendous strain on a corporation’s bottom line. The short-term costs associated with recalling a product can be staggering. Notifying consumers of the recall, pulling products off of the market and, where appropriate, repairing products already in commerce can cost hundreds of millions of dollars.
The long-term effects of product recalls are incalculable. If handled improperly, recalls can shake consumer confidence in a product’s safety and reliability. Consumers are typically a forgiving bunch. Proactive manufacturers that aggressively manage recalls can win back consumers’ trust in their products. Through the years, many reputable product manufacturers have navigated unscathed through highly publicized recalls. When recalls are mishandled, however, generations of consumers may lose faith in a product.
These same consumers may end up serving on juries hearing class-action lawsuits where the safety and reliability of recalled products are the central issues for their determination. Attorneys representing manufacturers will seek to exclude evidence of the recall, while the claimants’ attorneys will attempt to offer them as a corporate admission of product defects. Those who practice in the field of automotive products liability routinely engage in these evidentiary battles. Many more battles are looming over the horizon.
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