Companies split on warnings for keyboards

Article Abstract:

The debate over whether computer manufacturers should include labels on their keyboards is escalating. Concern over manufacturer liability in stress-related injuries sustained as a result of repetitive typing is in direct response the the precedent-setting jury ruling against DEC during the week of Dec 6, 1996. DEC maintains its innocence despite the ruling that awarded $5.3 million to the plaintiff. The jury did not find that DEC's keyboard was defective, but rather that DEC should include warnings advising customers of potential injuries from using its keyboards. DEC will not acknowledge any correlation between its keyboard and the plaintiff's carpal-tunnel syndrome. DEC, along with IBM, argues that the ergonomic suggestions in its reference literature and the software included with many of its computers is sufficient advice to customers about proper keyboard usage. While the prescribed warning labels go far in defending manufacturers in product liability cases, DEC and IBM have no plans to include them.

Keyboards (Computers), Industry legal issue, Keyboard

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Compaq explored takeover of DEC in '95 and '96, but talks are dead now

Article Abstract:

DEC held high-level discussions in 1995 and 1996 to buy Compaq for $9 billion to $10 billion, but by Sept 1996 both companies abandoned the idea. The merger talks provide indications of the challenges that both companies are facing. Compaq lacks high-end products and a global service organization to enable it to compete with rivals such as HP and IBM, even though Compaq is the world's largest PC maker. DEC makes the high-end Alpha processor and has a world-wide service organization. In 1995, DEC had a $6-billion service organization, with over 20,000 people employed worldwide for providing computer services. However, the company has been beset with problems including dropping sales and profits and slipping demand for its Alpha processor, in addition to sales and management problems. Digital's shares, which reached a maximum price of $76.50 in Feb 1996, closed at $30.50 a share in the NYSE at closing on May 2, 1997. Compaq's shares rose by $3.375 to reach $91.625.

Electronic computers, Electronic Computer Manufacturing, Analog & Hybrid Computers, Planning, Microcomputers, Mergers, acquisitions and divestments, Compaq Computer Corp., CPQ, Company business planning, Company Acquisition/Merger

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DEC loses $5.3 million jury verdict

Article Abstract:

DEC will file motions to have three recent verdicts reached in the US District Court in Brooklyn, NY, set aside by the trial court. DEC maintains that the jury ruling against it on Dec 4, 1996 ordering DEC to pay $5.3 million to a former executive secretary, along with the $302,000 and $274,000 settlements awarded to two co-plaintiffs, was unfounded and lacks evidence proving keyboards are responsible for the carpal tunnel syndrome suffered by the plaintiffs. The compensatory damages awarded to the women are in response to the absence of warnings on DEC products alerting consumers to the potential dangers of repetitive typing. Compaq has issued such warnings on its equipment since Aug 1994, suggesting that users pay attention to included safety guidelines in order to avoid possible injuries. This recent verdict against DEC contradicts the predominance of jury rulings in favor of computer companies in similar cases.

Company legal issue

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