Product LiabilityProduct LiabilityBusinesses that make or sell products are bound by product liability laws that make the business responsible for the safety of products. If a product causes harm or damage, the business that manufactures the product, components of the product or sells the product can be held liable. There are a number of laws and court rulings that act as a basis for the scope of liability that a business has for its product. However, if the business is found to be liable for the manufacture or sales of defective goods then they must compensate the injured party for any damage or harm that was caused by that product. Product liability can extend to the person or company that designed, manufactured, sold or furnished a product. What this means is that if a person is injured by a product that is deemed to be unsafe, then that person may have a cause of action against the person who designed the product, the company that manufactured it and the company that sold or furnished it. There was a time when the law was basically caveat emptor, meaning "let the buyer beware." This left little recourse for the consumer who was injured by a faulty product. In the United States, product liability law has experienced rapid, progressive growth that is definitely in favor of the consumer. The laws have evolved to enforce a very strict liability particularly for manufacturing defects that renders a product dangerous. The product liability laws are the basis for many of the recent product recalls that have been so abundant. Sometimes the product liability falls to one link in the chain of production and distribution such as the manufacturer of one component in a product. Other times the product liability may fall on the shoulders on all involved from design to distribution. There are four basic theories that can substantiate a plaintiff's cause of action: Negligence - the failure to exercise or absence of proper or ordinary care. This means that a company or individual who had a legal obligation did not do what they were supposed to do or that they did something that they should not have. A company that manufactures a product can be held liable if their employees did not perform their work properly or if management authorized procedures that were not proper and resulted in the creation of a product that was unsafe. Breach of Warranty - when a seller does not fulfill the terms of a claim, representation or promise that they made concerning the type or quality of the product that they sell. The seller does not have to post the warranty, the law automatically assumes that the seller extends certain claims or warranties on their products that they sell. The seller must then uphold those claims and warranties, posted or assumed by the law.
Strict Tort Liability - extends the responsibility of the manufacturer or seller to include any and all individuals who may be injured by the product even if there is the absence of fault. Guests, bystanders and others who did not have a direct relationship with the product (did not own it) may sue for damages that were caused by it.
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Misrepresentation - also known as false advertising. This occurs when the sales promotion or advertising makes assertions about a product that give a false sense of security to consumers regarding the safety of the product. Generally this is accomplished by diverting the attention away from the possible harms of the product's use thus resulting in what is usually determined as an intentional concealment of the hazards - negligent misrepresentation.
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