It is time once again to look back at some of the common legal issues that affected the industry in 2006.

Air quality and mold

This issue will likely never go away, so the best we can do is attempt to control it. The Carpet & Rug Institute (CRI) remains in the forefront and its diligence has reaped many benefits. Ever since a report came out stating carpet was responsible for the growth of dangerous mold, manufacturers, distributors and dealers have faced lawsuits by consumers and workers. These lawsuits required plaintiffs to produce experts whose alleged studies “proved” these carpet health dangers.

These reports, initially prepared at the request of a lawyer representing a plaintiff in a lawsuit, eventually came to be relied and built upon by agencies and consumer groups to the point where they have become “gospel” to many.

One example of this rush to judgment is contained in a recent New York State document entitled, “Guidelines and Specifications for the Procurement and Use of Environmentally Sensitive Cleaning and Maintenance Products for all Public and Non-Public Elementary and Secondary Schools in New York State.” One section recommends “schools minimize their use of carpeting in student occupied areas.”

The CRI has addressed these guidelines with New York State, as well as with other states or municipalities that have jumped on the anti-carpet bandwagon, with facts and figures showing why broadloom is no more dangerous, or costly, than any common flooring material.

Proposed legislation

As reported by the World Floor Covering Association, there has been proposed legislation that will affect the industry if any of it becomes a law.

This legislation includes the following proposals to:

•Create a “fair” system to address asbestos;
•Aid small businesses in the procurement and maintenance of health insurance benefits for their workers, and
•Establish federal standards for “preventing, detecting and remediating indoor mold growth,” which would also seek to establish insurance for those affected.

Some thoughts for retailers

•Make sure you get a signed order form before starting a job, stating all work that will and will not (such as flash patching) be preformed. It should also include delivery and installation dates; a form of acceptable payment; a procedure for your customer to register a complaint; various disclaimers for shading, seaming, etc., and warranty periods.
•Verify all of your insurances are in place, including but not limited to liability and compensation.
•Check your insurance coverage annually. It may be a good time to increase your limits and be sure you have the latest available coverage and riders.
•Be sure your “subcontractor” installers are truly subcontractors who carry their own insurance and pay their own taxes. Each job should be represented by a separate contract.
•Don’t fall for scams such as a request to ship goods to a distant location to what turns out to be a fictitious company, leaving you stuck with the bogus “freight charges” and the goods you ordered that were paid for with a stolen credit card.
•Make use of mechanics’ liens. Although the rules for filing these vary by state, we’ve found them to be a fantastic aid in getting payment, especially on commercial installations.
•Send out monthly statements for overdue bills. These can become evidence if you end up in court.

Good luck in 2007.