MFG Recall ,

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Question - MFG Recall - What Should You Do
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Ken,
   I have a question regarding the recent Interlogix ESL smoke detector 400 and 500 series recall. The period of the recall is from March of 2013 and May of 2014. They say that they are reimbursing customers and installers by supplying free replacement detectors and giving a credit through the distributor of $30.00 per detector.
   What is our responsibility for notifying our customers of this recall and getting the smoke detectors replaced?
   Interlogix says that we should notify our customers of the recall. I agree that this makes good business sense, but I am wondering what our legal obligation is here under the all in one contract.
Thanks
Keith Colorado
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Answer
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   I'm going to take a stab at this without doing any research. Question isn't so much should you notify your customer of a recall, but must you. You are in the chain of distribution. While you didn't manufacture the product you most likely selected it, installed it and have some continuing relationship with the customer monitoring or servicing the equipment, one or more of the components of which have been recalled. Even if you just sold a DIY system you may have a record of the purchaser.
   If you have a record of the sale then I think you have a duty to notify the customer of the recall. If the manufacturer has a record of the customer, perhaps because the product has to be registered to invoke even the limited warranty, then the manufacturer can send the recall notice and you don't have to. It's not uncommon for car dealerships to send out multiple recall notices for the manufacturer, which they no doubt are obligated to do under their franchise agreement, but also because they get paid for the repair, as you will get paid for your repair.
   If you're not happy with the amount of reimbursement then ask for more, before you get involved. If the manufacturer know of the defect and continued selling the product then you're in a better position to demand your actual cost plus profit to get involved in a recall repair.
   If you don't want to do the recall then you may want to notify your subscribers that you no longer have confidence in the product and they need to consider replacing it; you can provide the recall notice then as well, but if you're not willing to do the repair the manufacturer may get someone else to. That may not work out too well for you for customer relations.
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MFG Recall - What Should You Do - September 5, 2014