CM vs Customer Liability for Defective Product

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When a product is only assembled and visual inspected (no te... - Jul 31, 2023 by calebcSMT

This is more lawyer stuff than engineering. In occasion like... - Jul 31, 2023 by Evtimov

But what would the general basis be in the industry or at le... - Jul 31, 2023 by calebcSMT

Small companies or startups will probably test boards themse... - Jul 31, 2023 by Evtimov

calebcSMT

#89795

CM vs Customer Liability for Defective Product | 31 July, 2023

When a product is only assembled and visual inspected (no testing required), who becomes liable/pays for defective product, when the issue is not visual?

If a customer is not requiring testing at the CM, technically they're only paying for a fully assembled product and 'working product' would be a risk without testing, correct?

If the defects cannot be seen visually, and cannot be determined to be caused due to poor assembly practices by the CM (such as MSL or ESD handling), would the customer ultimately be having to eat the cost of the rework/defective product? Or should the CM be replacing the product at their expense?

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Evtimov

#89796

CM vs Customer Liability for Defective Product | 31 July, 2023

This is more lawyer stuff than engineering. In occasion like this one, it is probably time to open conversation around testing and hidden joints checks. In 21st century to perform only visual inspection is not a serious process, unless it is a very simple PCBA with a few parts on it and all joints visible.

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calebcSMT

#89800

CM vs Customer Liability for Defective Product | 31 July, 2023

But what would the general basis be in the industry or at least the expectation, when not testing the unit?

At least from what I've seen, 70%+ of customers don't request any type of testing and only need visual inspections... so if an assembly fails when delivered to the customer, but is built as required and visually ok, would the CM be expected to pay for replacement?

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Evtimov

#89801

CM vs Customer Liability for Defective Product | 31 July, 2023

Small companies or startups will probably test boards themselves in HLA stage to save money in production. If this is customers you are dealing with, should be part of your contract, that functionality will not fall in your bucket as there is no functional test.

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