Riordan_Manufacturing

Corporate Compliance Plan for Riordan Manufacturing LaQuita Keahey Law 531 Robert Kreitlein Riordan Manufacturing, Inc. Riordan Manufacturing, originally Riordan Plastics, was founded in 1991 by Dr. Riordan after obtaining several patents relative to processing polymers into high tensile strength plastic substrates. Its corporate headquarters, where research and development is done, is located in San Jose, Ca. It employs 550 people and has earnings of $46 million. In 1992, he obtained venture capital and purchased a fan manufacturing plant in Pontiac, MI, changing its name to Riordan Manufacturing, Inc. In 1993, after company expansion to a plant in Albany, GA., production of plastic beverage containers began. In 2000, the fan manufacturing operations was moved to China, and the Pontiac, MI operation was redesigned to manufacture custom plastic parts. ADR Riordan Manufacturing will solve all conflicts using an alternative dispute resolution method. It is a more cost effective and efficient method of resolving conflicts. The ADR clause states that “the parties agree that if a dispute arises in relation to Riordan Manufacturing, Inc., any demands, claims, or controversies should be settled by mediation. All parties shall participate in the mediation process in good faith.” Mediation will be aimed at helping two or more parties reach an agreement. A third party, the mediator will work with the disputing parties to find common points of agreements and assist on a fair result. There will be different techniques and skills used to help the parties reach an agreement. Mediation does not give the decision making to power to anyone other than the parties involved. There are several steps to a successful mediation. An introductory statement will be made by the mediator in the presence of both parties stating the rules of mediation, and the role of both parties. Each party will be allowed to explain their side of the disagreement. The mediator will consider both explanations and ask questions to offer ways the dispute can be resolved. After an agreement is made between parties it will be written and recorded. If the conflict is not resolved within 48 hours, it will be referred to arbitration. ENTERPRISE and PRODUCT LIABILITY Enterprise liability is a legal principle that holds the company responsible for the obligations or offences of it constituents. Product liability is the liability of manufacturer’s, sellers, lessons, and others for injuries caused by defective products (Cheeseman, 2010). Riordan Manufacturing, Inc. will take all necessary steps to ensure the company is protected from any lawsuits. The legal team will be responsible for reviewing and assessing any and all contracts with vendors and suppliers. Contracts need to state clearly and free of any misinterpretation of the responsibilities and requirements of all parties. This will minimize the loss of contracts and avoid risks and liabilities for Riordan. All parties will act in good faith, this will ensure that Riordan and its suppliers and vendors build a stronger and profitable business relationship. Riordan Manufacturing’s legal team will also ensure that the company is in compliance with all regulations they are governed by. All warranties, manufactured defects, and product safety features need to be recorded by Riordan. Riordan is expected to meet all standards to avoid any and all tort liabilities. Regular testing and documentation of all defects need to be conducted to make sure they are staying compliance with all state and federal regulations of all manufacturing processing plants. All testing should be done by a creditable source to ensure accuracy. The appointment of a risk manager to conduct testing and make sure any violations are corrected will minimize non-compliance and build creditability with governmental regulating agencies. INTERNATIONAL LAW Riordan Manufacturing has a plant in China, employees as well as management will be required to take some international business classes and training in the culture of China. It would be beneficial for work in this plant. Training would ensure that employees are able to communicate with each other. Riordan Manufacturing, Inc., will retain the services of Litteral & Finkel, who specializes in international law. This firm will be able to inform Riordan of Chinese employment, tax, trade, and environmental regulation laws. TANGIBLE and INTELLECTUAL PROPERTY Tangible property includes both real and personal property. Riordan will ensure that loans are governed by contracts. Security systems will be installed in all sensitive areas, background checks will be made on all of its employees working in the sensitive areas. This will prevent any crime of theft. Intellectual property is ownership of ideas. The only way to protect these is by trademarks, patents, and copyrights. Riordan will have to audit their current patents to make sure not to violate another company’s intellectual rights. Since Riordan has inventions include patents on plastics it is important to protect their ideas. The legal team will ensure all assets are secure. The research and development team will ensure benchmarking to protect the company’s ideas and innovative efforts. LEGAL FORMS of BUSINESS The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. Riordan will organize ownership of shares of stock and would be a separate legal entity from the owners. Potential loss for the owners would be the only capital they invested. This would protect owners for being sued for money owed. Riordan will follow the laws of California which will be incorporated into the employee handbook and made available via internet website. The operation and control of the company would be with shareholders who would be governed by a board of directors. GOVERNANCE Issues requiring corporate governance principles include: internet controls, oversights of the company’s financial statements, review of the compensation plan for executives, and the management of risk. Corporate governance must define all written objectives and protect the investments of the investors from risks such as misuse, fraud and embezzlement. The shareholders, management, and the board of directors are the key players in governance. The stakeholders include the employees, suppliers, and the customers. They must be assured that their investment will improve the company’s performance and reputation. Financial reporting is the key to governance and should be in compliance with statutory and ethical obligations. References University of Phoenix. (2010). Riordan Manufacturing Simulation. Retrieved from University of Phoenix website. Cheeseman, Henry R. (2010). Business Law: Legal Environment, Online commerce, Business Ethics, and International Issues (7th ed.). Upper Saddle, NJ