From: jim bell <jimbell@pacifier.com>
Date: Thu, 26 Dec 1996 17:30:13 -0800 (PST)
To: Brian Davis <bdavis@thepoint.net>
Subject: Re: Legality of requiring credit cards?
Message-ID: <199612270130.RAA14252@mail.pacifier.com>
MIME-Version: 1.0
Content-Type: text/plain


At 05:24 PM 12/26/96 -0500, Brian Davis wrote:
>
>On Wed, 25 Dec 1996, jim bell wrote:
>
>> At 12:31 AM 12/26/96 -0500, Brian Davis wrote:
>> 
>> I would argue that if the bank can be forced to help the government enforce 
>> the law, the bank should also become liable for damage done as a consequence 
>> of complying with such requirements.  While it's a different area, within 
>> the last few years a decision was made (SC?) that companies which had made 
>> Agent Orange for the US Government during Vietnam can be held liable 
>> (without recourse against the government, apparently) for the damages 
caused 
>> ex-servicemen for selling dioxin-tained Agent Orange to the government, but 
>> manufactured totally according to government specifications.  (and used 
only 
>> outside the US, under government direction, by government agents, in an 
>> entirely different legal jurisdiction, to boot!)   Seemingly, doing 
>> something at the behest of government does not immunize one.
>
>The fact that a bank complied with a federal regulation governing the 
>bank is not similar to a business selling a defective product.

Wrong.   They're not _identical_, but on the other hand it is indeed similar 
in many respects.  Remember, "complying with a federal regulation" is 
actually a misleading statement:  If _any_ leeway is allowed
in how to "comply," the organization involved is, presumably, liable for the 
exercise of that freedom.  Or, at least, they should be if the rules were 
followed.  

While admittedly this is an off-the-wall example, if a bank reported these 
transactions by sending them by car driven by a license-free 16-year old, 
and he lost control and killed a dozen people in a crowd, the fact that the 
bank "was complying with a federal regulation" wouldn't save them from hefty 
liability.  

 




Jim Bell
jimbell@pacifier.com