Restoration Hardware 2012 Annual Report Download - page 99
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Item 3. Legal Proceedings
From time to time we and/or our management are involved in litigation, claims and other proceedings
relating to the conduct of our business, including but not limited to consumer protection class action litigation,
claims related to our collection of reproductions, claims related to our employment practices, claims of
intellectual property infringement, including with respect to trademarks and trade dress, and claims asserting
unfair competition and unfair business practices by third parties. In addition, from time to time, we are subject to
product liability and personal injury claims for the products that we sell and the stores we operate. Subject to
certain exceptions, our purchase orders generally require the vendor to indemnify us against any product liability
claims; however, if the vendor does not have insurance or becomes insolvent, we may not be indemnified. In
addition, we could face a wide variety of employee claims against us, including general discrimination, privacy,
labor and employment, ERISA and disability claims. Any claims could result in litigation against us and could
also result in regulatory proceedings being brought against us by various federal and state agencies that regulate
our business, including the U.S. Equal Employment Opportunity Commission. Often these cases raise complex
factual and legal issues, which are subject to risks and uncertainties and which could require significant
management time. Litigation and other claims and regulatory proceedings against us could result in unexpected
expenses and liability and could also materially adversely affect our operations and our reputation.
Item 4. Mine Safety Disclosures
Not applicable.
43
Form 10-K