Document peedB3Lr0EeNj0YMOyq1QpO2a

FILENAME: Flintkote (FLK) DATE: 1976 Oct 8 DOC#: FLK022 DOCUMENT DESCRIPTION: Memo RE Product Liability Private Labels } Mr. C. T. Derry Rutherford Product Liability Private Labels - 8. Weiss October 8, 1976 ' Rochelle Park . relative to your letter of September 9, 1976 addressed to Mr. J. C. Schmitt vhieh ve discussed during a tele phone conversation on September 13. 1976. we met with insurance company representatives to discuss the method of handling the product liability exposure connected with custoaiers' private labels and we'were advised as follewst 1. If a customer's private label, designed by the customer, is applied to the product by Flintkote. any and all liability that ia incurred as a result of label deficiencies will be Flintkote'a. .2. If Flintkote's product is shipped to the customer and tha customer applies his private label, which he has designed. Flintkote will still be liable but at a lesser degree than in #1 above. Because Flintkote is introducing tha product into tha stream of commerce, it ia Flintkote'a responsibility to apply all necessary warnings and cautions even though the customer may re label. the container at a later date. If we apply tha private label at tha time it is shipped from the plant, 'we would not have a defense for actions taken against ns for inadequate labeling. 3. If Flintkote provides customers with product data sheets and if the customer indemnifies and holds Flintkote harmless for liabilities arising out of inadquato private label content and design, it ia still not certain that the courts would absolve Flintkote from any liability. It would be very difficult for us to defend ourselves if it ie shown that we knowingly applied a label which was deficient. Upon further discussion with the insurance company, we arrived at three optional procedures for protecting Fllntkote's interests in tha use of private labels. They are as follows> f . C. T. Derry -2- October 8, 1976 1. I Fllntkote apply to containers the required warnings, precautions. Instructions, etc. separately and In addition to a label furnished by the customer. 2, FilntJcte provide the complete label leaving a blank section for the customer to have his nans imprinted. 9. Fllntkote provide a model label and require the customer to duplicate without deviation the same information on any private.label. Xt is suggested that you consider the above options as solutions to the private label problem. 10^ As an example of what can occur through an over-airf in labeling or advertising, we are enclosing a ohotostatic copy of an article entitled "labels a Advertise-- - tents That lead To Liability". You nay wish to circulate this publication to concerned individuals. EW,rv Enc. cci Mr.J. c. Sehmitt _ Mr.J. C. Baricness -- Mr.W. R.Hortonson Mr.J. J. Moran Mr. A.A. Booker, Jr, Mr.H. F. Stepsnek Kr.T. H.Parke,Jr. Rochelle Park a_ Rutherford w/e Rutherford w/e Rutherford w/e Rutherford w/e Rochelle Park w/e Stamford w/e