Archive for cpsia

Foreign Manufacturers Legal Accountability Act of 2010

BadCongress.com logoWatch out. Congress is at it again and this time they may wipe out half the vintage dirt bike industry.

A couple of years ago the motorcycle industry was caught by surprise when Congress enacted, and then deployed, the Consumer Product Safety Improvement Act (CPSIA) — almost immediately wiping out a $1 billion youth motorcycle and atv industry. Over the ensuing two years the CPSIA proved to be a massive screw job for all sorts of small businesses.

On Wednesday, June 30, 2010 the House Energy and Commerce Committee passed (by voice vote) another piece of legislation that could be equally devastating to the vintage dirt bike scene — the Foreign Manufacturers Legal Accountability Act of 2010, H.R. 4678. The bill now moves to the larger Ways and Means Committee or perhaps to the floor for a vote.

This act is aimed at forcing foreign manufacturers into the US tort system for liability law suits. Like most laws, that sounds great in a sound byte on the news – force all those big Chinese and Taiwanese companies to be accessible to our thousands of personal injury lawyers.

The truth is that if you’re a vintage dirt bike fan and you buy or use any part that’s made in the UK, China, Taiwan, Australia, or Europe by a small manufacturer you may well find that part is no longer available to you. Those cool CZ parts Bertus brings in from Czechoslovakia? Not gonna happen if this bill passes. Nifty trials parts for your Ty250 or TL125 from Great Britain? Kiss them goodbye. Replica frames from GMC in Australia? Adios, amigo.

To get a little more insight into this bill I called Paul Vitrano, General Counsel for the Motorcycle Industry Council (MIC) and the Motorcycle Safety Foundation (MSF), to discuss it. Read More…

Cobra Motorcycles president Sean Hilier on Rush Limbaugh

Cobra Motorcycles president Sean Hilier was on the Rush Limbaugh program yesterday, to discuss the notorious Consumer Product Safety Improvement Act of 2008 (CPSIA) and its devastating effect on his company.

I didn’t hear the show but you can read the transcript here. According to Hillier, Cobra employs fewer than 50 people, but there are about 100 companies around the country that depend on Cobra for business (probably contractors for the manufacturing of various parts.)

Hillier also noted that when similar, game-changing legislation hit the auto industry back in the 1980s the industry had years to react and re-engineer. The CPSIA was passed in August of 2008 and put into law six months later. With catastrophic effects.

This is not the last we have heard about this law. This is another fine example of people who don’t know what their doing, passing a law on a topic they don’t know anything about, with absolutely no consideration for its consequences. This is what happens when government “works”.