Riordan Manufacturing

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Category: Business and Industry

Date Submitted: 06/30/2010 06:40 AM

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Riordan Manufacturing is a global plastics manufacturer who conducts business all over the world. There are plants in the United States (Albany, Georgia & Pontiac, Michigan) and in Hangzhou, China. The U.S. plants produce custom plastic parts, while the China plant produces plastic fan parts. Its corporate headquarters are located in San Jose, California. This is where the company’s research and development is conducted. Riordan employs 550 people and brings in projected earnings of $46 million annually. The following corporate compliance plan has been established with the intention of keeping Riordan Manufacturing (along with its officers, directors and shareholders) from facing legal risks and responsibilities. Our goal here at Riordan is to continue into the future by “staying focused on achieving and maintaining reasonable profitability to assure that the financial and human capital growth is available for sustained growth.”

Avoiding enterprise and product liability is absolutely critical when speaking about Riordan’s future as a successful company. At Riordan, we produce plastic parts that are life critical such as heart valves and medical stents. If any of these products are defective and cause injury or death to users, then injured party or relatives of the deceased could (and most likely would) bring severe legal action down on Riordan in order to recover damages. This is why it is absolutely essential for Riordan to avoid becoming negligent and to always exercise due care. If Riordan fails to “assemble a part correctly, are negligent in product design, negligent in inspections or testing of a product” (Cheeseman, 2010), then Riordan has failed to exercise this due care. We have recently been informed of a situation in our Pontiac, Michigan plant involving quality and training issues. The team superintendant has brought forward these concerns because the plant manager has failed to correct them.

The problem, specifically, involves our medical stents...