Opinion ID: 1343570
Heading Depth: 1
Heading Rank: 4

Heading: replacement as a necessary, integral, or essential part of business

Text: Dow's complete replacement of the facade panels containing Sarabond with panels containing the product of another manufacturer was not a necessary, integral, or essential part of its business. See Woodard, 315 S.C. at 338, 433 S.E.2d at 895 (holding manufacturer a statutory employer because transportation of chemical was necessary to continue normal production); see also Raines v. Gould, Inc., 288 S.C. 541, 547, 343 S.E.2d 655, 659 (Ct.App.1986) (holding installation of an electrical system at manufacturer's plant was not required for functioning of manufacturer's operations of making and selling batteries); Hairston, 286 S.C. at 498, 334 S.E.2d at 827-28 (holding transporting cars was essential to the leasing and sale of automobiles). Dow's basic operation of manufacturing Sarabond is not dependent on making the replacements at MUSC. Regardless of how Dow determines to settle its dispute with MUSC, the manufacturing of Sarabond can continue. Citing Adams v. Ford Motor Company, 573 F.2d 1182, 1186 (10th Cir.1978), Dow argues that ensuring the quality of one's own product by servicing and repairing it is a necessary part of business. In Adams, the Tenth Circuit found that a car manufacturer was entitled to the protection of the statutory employer defense when a car dealership's employee asserted a claim involving injuries incurred when an automobile was brought in to the dealership for warranty repairs. The court based its holding on the finding that the granting of warranties to purchasers of the car manufacturer's products contemplated the possibility of significant amounts of work to be done by repairmen at dealerships. Id. Adams differs from this case in two principal ways: The inclusion of a service contract at the time of purchase and the presence of a network of dealerships available to handle maintenance concerns both demonstrate the frequency of service and repairs that the Adams defendant anticipated. In contrast, Dow did not enter into a service contract for Sarabond at the time of purchase. Instead of being a part of the basis of the bargain, Dow's agreement to make the replacements stemmed from a simple desire to settle a claim and avoid litigation costs. Additionally, the network of dealerships equipped to handle maintenance under the service contract in Adams indicated an understanding that frequent repairs would be required. However, settlement of a lawsuit happens only occasionally and, unlike the provision of a network of service centers, is not an important factor in the promotion and marketing of the product.