Legal Question in Legal Ethics in Michigan
I own a large company & recently found out the materials we use to make our product have been substituted with a lower grade of material. The sales man is buy a lesser grade material & charging us the same price, thus making more money. Is there anything I can do? Also we are a ISO9001 certified company, does this in anyway effect that.
1 Answer from Attorneys
First, this is not a legal ethics (pertaining to legal malpractice) question, it is a fraud issue, that is either civil or criminal. If your supplier is selling you inferior goods and he knows this, but you don't, it is fraud on his part. If you are purchasing inferior goods, and using them in your product and then passing the product onto consumers with the implication that top grade materials were used in the manufacturing process, they you have committed fraud. If you are ISO certified, then you have real problems, as you are guaranteeing that your product conforms to the specifications that you have indicated. In the event that a consumer is injured or harmed in any way, due to the inferior materials used in the product, every party who knew, (or should have known) about the lesser grade materials will be liable. You may recall the problem with inferior poor quality bolts that were used to hold an engine on an airplane. Needless to say, the bolts failed while the plane was in the air causing a terrible fatal crash. This is why this country subscribes to ISO. You need to take immediate corrective action to recall any defective items that your company has produced that could cause injury to persons or damage to property. If you own a large company, your corporate lawyer should have already told you this. If he/she didn't, then you have a legal ethics/professional responsibility (legal malpractice) problem.