When Should You Make the Call About a Recall?

You just received your third notice that one of your parts has failed. What should you do?

Recalls of potentially dangerous RVs and RV components are governed by the National Highway Traffic Safety Administration (NHTSA). An RV manufacturer whose product is categorized as a "motor vehicle" (under the broad federal definition, which includes towable RVs) must notify NHTSA and the owners, purchasers and dealers of certain RVs when it (1) learns that the vehicle or vehicle line has a defect related to safety or (2) decides that the relevant vehicle or component does not comply with applicable motor vehicle safety standards.

For reporting obligations to arise, the manufacturer must first have notice that there is a safety "defect." A vehicle or component contains a defect if it is subject to a significant number of failures (or malfunctions) in normal operation. A failure rate of six times the rate of its peer group is considered a defect. However, any noticeable increase in reported defects should be explored, especially if the defects appear to be safety related. Further, defects may be safety related when they could cause things like loss of control of a vehicle or engine fires. Even defects affecting the non-operational safety of a motor vehicle can be subject to recall.
   
The NHTSA gives examples of safety-related defects. These include steering components that break suddenly, problems with fuel system components that might result in leakage of fuel or fires, accelerator controls that break or stick, wheels that crack or break, seats and/or seatbacks that fail unexpectedly during normal use, air bags that deploy under non-emergency conditions, car ramps or jacks that may collapse, child safety seat features that create risk of injury, as well as many others. Ignoring multiple reports of similar problems could subject a manufacturer to fines, law suits, including class actions, and even claims of conspiracy to conceal information.

This article also appeared in RV Focus: A Newsletter for the RV Industry Professional, authored by lawyers who understand the RV industry and take a practical look at legal issues that can affect a company. Legal problems are costly and distracting, and company time is better spent focusing on production, sales, cost control and business relationships.