The recent Ford/Firestone litigation in the US, relating to the alleged defectiveness of certain of Firestone’s tyres, coupled with the corporate shock waves still reverberating within the US as a result of Enron’s collapse, has resulted in the US Congress placing a greater emphasis on corporate accountability.
Legislation is now in the process of being introduced within the US, with proposals to criminalise the manufacture and distribution of defective products, and to penalise corporate officers and directors of such companies for the design and distribution of such products. The proposed legislation includes large fines and/or imprisonment for knowingly introducing a defective product onto the market. Clearly, the implications of this proposed legislation are far reaching, not only in relation to the risk management activities which will need to be reviewed by US manufacturers (or European-based manufacturers with US subsidiaries), but also in relation to both product and
