2/13/2014 1 engineering & technology management group engineering technology management tracking...
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04/10/23 1Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
Legal Considerations
Affecting Risk Acceptance
R. Scott Johnson
Legal Aspects of Aerospace TC
McKee, Voorhees & Sease, LLP
Topic 3
04/10/23 2Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
What is risk?
• Potential for
04/10/23 3Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
Negligence
• Duty• Breach of Duty• Injury• Causation
04/10/23 4Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
Negligence
• Duty– Generally: Exercise Reasonable Care
• Breach of Duty• Injury• Causation
04/10/23 5Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
Negligence
• Duty– Specifics: Statutes, Rules, and Regulations
• Breach of Duty• Injury• Causation
04/10/23 6Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
Specifics: Statutes, Rules, and Regulations
• Federal Aviation Act of 1958– 49 U.S.C.
• Provides regulatory authority for:– Department of Transportation
• Aviation Economic Regulations or AERs 14 C.F.R. §
200-400– Federal Aviation Administration
• Federal Aviation Regulations or FARs 14 C.F.R. § 1 -
199– National Transportation Safety Board
• 49 C.F.R. § 830, 31, and 45
04/10/23 7Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
Specifics: Statutes, Rules, and Regulations
• State products liability laws– “liability of a manufacturer or seller of a
chattel which is defective and/or unreasonably dangerous and causes” injury.
– William R. Prosser, Handbood of the Law of Torts 641 (4th ed. 1971)
– Three theories of recovery:• Warranty (contract remedy)• Strict liability (tort remedy)• Negligence (tort remedy)
04/10/23 8Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
Negligence
• Duty• Breach of Duty• Injury• Causation
04/10/23 9Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Bad
• Create broad range of compliance duties• Create investigation bodies
– NTSB determines “probable cause” for all aircraft accidents in the U.S.
• Create Enforcement Procedures– Civil and criminal penalties
04/10/23 10Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Bad
• Other Sources of Liability– Contract provisions– Other Federal and State Statutes and
Regulations• Environmental• Intellectual Property• Employment• Corporate
– International Treaties
04/10/23 11Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Good
Statutes can be good?
04/10/23 12Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Good
• General Aviation Revitalization Act of 1994 (42 U.S.C. § 40101) – 18 year statute of repose
• prohibits any legal action for any aircraft, engine or part at issue
– Applies to all general aviation aircraft
04/10/23 13Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Good
• General Aviation Revitalization Act of 1994 (42 U.S.C. § 40101) - Exceptions– Manufacturer “knowingly misrepresented or
concealed or withheld” from the FAA information relating to:
• The type certification• components• airworthiness
04/10/23 14Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Good
• General Aviation Revitalization Act of 1994 (42 U.S.C. § 40101) - Exceptions– claimant was a passenger for purposes of
receiving emergency or medical care
04/10/23 15Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Good
• General Aviation Revitalization Act of 1994 (42 U.S.C. § 40101) - Exceptions– suit is brought under the manufacturer’s
written warranties
04/10/23 16Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Good
• State statute of limitations• International Treaties
– Warsaw Convention • Other liability limiters
– Sales contract provisions • shift liability away• limit liability
– Insurance agreements• cover yourself
04/10/23 17Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Beautiful
• Risk Management Programs– By whom?– Government Initiated
• NTSB or FAA– Insurance Company– In-house
04/10/23 18Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Beautiful
• Risk Management Programs– Evaluate loss potential– Use established risk management
techniques– Put a plan in action
04/10/23 19Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Beautiful
• Risk Management Programs– Evaluate loss potential
• Total potential loss X % Chance loss will occur
• Account for “all” losses (Economic & Social)
– Use established risk management techniques
– Put a plan in action
04/10/23 20Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Beautiful
• Risk Management Programs– Evaluate loss potential– Use established risk management
techniques• Eliminate (Don’t Do It)• Reduce (Rapid Response)• Transfer (Insurance)• Retain (Savings Plan)
– Put a plan in action
04/10/23 21Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
The Beautiful
• Risk Management Programs– Evaluate loss potential– Use established risk management techniques– Put a plan in action
• Identify the risks– Maintain database of accidents,
lawsuits, liability situations• Create contingencies and risk reducing
methods• Example: British Airways BASIS program
04/10/23 22Engineering & Technology Management Group
Eng
inee
ring Technology
ManagementTracking the Constant of Change
ManagementHistory
Society Legal Aspects
LogisticsSupply Chain
SystemsEngineering
Economics
Risk
TechnicalInformation
MultidisciplineDesign
ProductDevelopment
Thank you!
R. Scott JohnsonMcKee, Voorhees & Sease, PLC801 Grand Avenue, Suite 3200Des Moines, Iowa 50309johnson@ipmvs.com
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