Ed:

     I think your example may have taken the issue to an unnecessary
     extreme.  In your example, the original "Customer" of the raw PCB
     (call them Assembly manufacturer for clarity) failed to detect the
     defect in the course of manufacturing his/her product. I think the
     financial liability of the raw PCB manufacturer stops at the cost of
     the replacement of the ASSEMBLY into which his/her PCB was used, not
     the result of subsequent negligence.  The Assembly manufacturer's
     insufficient testing of the finished product would let the PCB
     fabricator off of the hook for the building fire, but not for the
     replacement cost of the assembly.

     If the PO called for 100% testing, the PCB fabricator of the defective
     fab should be responsible for the assembly replacement cost, since a
     fully compliant fab was ordered and paid for.  This would have to be
     supported by clear evidence that the defect was created in the
     fabrication of the board (e.g. cross-sections, photos, etc.).

     In a prior "life", I was involved in the receipt of discrepent PCBs (i.e.
     "tested" boards with opens/shorts embedded) that were subsequently built
     into assemblies. By contract (PO), we purchased 100% tested boards (the
     lots included Certificate of Compliance) and several expensive custom ICs
     were consumed in the final assembly of the product.  Due to the embedded
     defect(s), we had to scrap the entire assemblies at test.  The fabricator
     was proven negligent (with irrefutable evidence) and would, in my opinion,
     therefore be liable for the replacement cost of the assembly. In this case,
     we discovered the defect in product testing before it got further
     downstream.  As OEMs to our customer, we were NOT negligent in shipping
     defective product.  No computer burned up, no buildings were destroyed.

     The debate goes on !

     Bill Fabry
     Sr. Manufacturing Engineer
     Plantronics, Inc.
     (408) 458-7555
     [log in to unmask]

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Subject: Re: [TN] Liability of products
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