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OBOTUAROES

OBOTUAROES

By CHUCK LINK executive director

FlnOoUCf liability,has turned into l- a circus of adventures. Removal of the traditional defenses and granting the most imaginative claims has caused the insurance industry and the industries they serve to be completely stymied.

Most liability suits are settled out of court, but about 42% of all product liability payments have gone to attorneys under the heading of "cost of defense." It appears that industry is so frightened of liability claims they will settle immediately and this only encourages wilder claims and more suits.

Some manufacturers are including "Hold Harmless" agreements in their printed confirmation of orders. The distributors and wholesalers in some cases are doing the same which means that merchandise shipped to you may have a "Hold Harmless Agreement" in the written. confirmation.

In addition, the agreement may stipulate that the customer will pay the legal defense expenses in connection with any product liability case.

This is a bad agreement for the retailer to sign. In the first case, if a product actually fails or through normal use causes injury, why should the retailer be the one holding all the responsibility?

Certa'inly lthe courts would not honor a "Hold Harmless" agreement signed by one of your customers in a legal action. We suggest that you review any written confirmation of purchase to determine if such agreements are included and if they are, you should determine from legal counsel whether you should sign or be bound by such agreements.

What customers dislike most. The Better Business Bureau polled 67,000 Americans in what they say was the "broadest survey of consumer opinion ever undertaken in this country." Following is the response to the ques- tion: What is the public's biggest gripe against marketers today?

.

3l% say "products that don't

. 23% list misleading advertisements.

. 20% cite poor personal service in stores.

. 20% misleading labels, directions or packaging.

We're glad to follow up with a happy note on our January column about the Washington members'WISHA $16,900 penalty. With our help, the member arranged for a hearing with WISHA. It resulted in the penalty being reduced to $100. It's a reminder that you do have the right to ask for a hearing should you be cited for violations and fined under OSHA regulations.

NN ONTANA N trWS

FILANS FOR the 1978 MBMDA

|' Convention show promise for an inferesting and exciting 42nd annual meeting.

To be held at the Convention Center in West Yellowstone, Mt., May 1l-13, it will bring guests to the western gate of Yellowstone Park at the time when the wonder of spring joins the other natural phenomena for a thoroughly enjoyable convention site.

Elements of the program will rnvolve employee training and compensation, altemate energy exploration and utilization, the FmHA construction loan program, credit card utilization. and clarification of federal regulations affecting the employeremployee relationship.

News of interest within the industry:

Roger Walsh, who says his life has been involved with sawdust for 54 years, has sold Walsh-Anderson Lumber Co., Great Falls, to Jordan Benson, Dick O'Connor and Gary Syljuberget,

Jordan being president and general manager. Roger, a past president of MBMDA. has finally managed to assure himself arrple opportunity to enjoy and improve his golf game.

Associate member Stanley Jensen, v.p. of Jensen Byrd Co., Spokane, has been elected to the presidency of National Wholesale Hardware Association.

By R.V. PETERSEN executive secretary F

Named as Our Own Hardware dealer-of-the-year was Rick Ogle, KenyonNoble Lumber. Bozeman.

Reported with deep regret is the passing of Fred H. Robinson, Grogan Robinson Lumber Co.. Great Falls, a life-time member of the building material industry and staunch friend of MBMDA.

Dex Shaurette and yours truly represented MBMDA in Washington at the 6th Annual Conference with Congress. Dealer personnel and representatives from across the country have made these confrontations with the members of Congress highly significant and effective in matters of industrv concern.

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