Seagate 2009 Annual Report Download - page 38

Table of Contents
Environmental Regulations
—Failure to comply with applicable environmental laws and regulations could have a material adverse effect on
our business, results of operations and financial condition.
The sale and manufacturing of products in certain states and countries may subject us to environmental and other regulations including, in
some instances, the responsibility for environmentally safe disposal or recycling. For example, the EU has enacted the Restriction of the Use of
Certain Hazardous Substances in Electrical and Electronic Equipment directive, which prohibits the use of certain substances in electronic
equipment, and the Waste Electrical and Electronic Equipment directive, which obligates parties that place electrical and electronic equipment
onto the market in the EU to put a clearly identifiable mark on the equipment, register with and report to EU member countries regarding
distribution of the equipment, and provide a mechanism to take-back and properly dispose of the equipment. Similar legislation may be enacted
in other locations where we manufacture or sell our products. Although we do not anticipate any material adverse effects based on the nature of
our operations and the focus of such legislation, we will need to ensure that we comply with these laws and regulations as they are enacted and
that our suppliers also comply with these laws and regulations. If we fail to timely comply with the legislation, our customers may refuse to
purchase our products, which would have a material adverse effect on our business, results of operations and financial condition. In addition, if
we were found to be in violation of these laws or noncompliance with these initiatives or standards of conduct, we could be subject to
governmental fines, liability to our customers and damage to our reputation, which would also have a material adverse effect on our business,
results of operations and financial condition.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
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