Liability for Defects and Product Liability for Deliverables under Work Contracts
First written in FY2022. 1 of 2 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2023: 2 of 15 companies on the "Worse" side.
18 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「For development services performed by the Group under outsourcing contracts, the Group receives consideration for performing the contracted design and development work and delivering the completed deliverables. Accordingly, it may face claims for defect liability or product liability relating to the work or deliverables to be completed under those contracts. To mitigate these risks, the Group clearly defines in each individual contract (order form) the specifications of the work and deliverables to be completed and the acceptance procedures.」
The Group continues to disclose the risks of defect liability and product liability relating to deliverables from outsourced development and the mitigation measures of clearly defining specifications and acceptance procedures. - FY2022First statedAnnual report
「For development services performed under outsourcing contracts, the Company receives consideration for performing the contracted design and development work and delivering the completed deliverables. Accordingly, it may face claims for defect liability or product liability relating to the work or deliverables to be completed under those contracts. To mitigate these risks, the Company clearly defines in each individual contract (order form) the specifications of the work and deliverables to be completed and the acceptance procedures.」
The Company discloses the possibility of defect liability and product liability for deliverables from outsourced development and the measures to mitigate these risks by clearly defining specifications and acceptance procedures.