Electronics manufacturers may find themselves in a courtroom facing litigation one day. Whether on the side of prosecution, or defense, some of the primary reasons a manufacturer finds themselves in litigation can include one or more of the following, where, all of the reasons below, can extend beyond the electronics industry.
For starters, an electronics manufacturer can be held liable due to material or product defects or malfunctions in their products or equipment that cause harm to consumers, or users of their product and equipment.
Intellectual property infringement is another reason. Electronics manufacturers may face legal action if the manufacturer is accused of infringing on the patents, trademarks, or copyrights of others.
False advertising is another area where manufacturers may face litigation.
Some contract manufacturers are sometimes found to be making false claims (disclosure) compared to what is often found, in terms of services and capabilities (discovery) post touring provider factories. (OEM manufacturers can request the Venture Outsource request-for-quote (RFQ) checklist for contract manufacturing design and manufacturing programs, here)
Similarly, manufacturers can be found to be making false or misleading claims about their products.
Manufacturers may also face litigation for environmental violations if they are found to be violating environmental regulations or polluting the environment.
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Discrimination or harassment is another potential pitfall for manufacturers that might face litigation, as a result, if they are found to be discriminating against employees, or engaging in harassment.
Safety violations can also be a concern. Manufacturers may face litigation if they are found to be violating safety regulations or putting employee safety or lives at risk.
Engaging in unfair or anticompetitive business practices, or unfair competition, can also bring a manufacturers before a courtroom.
Breach of contract
Breach of contract or manufacturing service level agreement (SLA) can also bring manufacturers into a courtroom facing litigation if they fail to fulfill their obligations under a contract or, terms and conditions, and clauses they otherwise agreed to, previously.
In contract electronics industry, there are several reasons where contract electronics services providers may breach service level agreements. Some more common areas for breach, include, but are not limited to, the following, below.
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