Product Liability Law

The product liability law is designed to protect the consumer in the event that a product causes harm, injury or damage. In such cases, the laws give the consumer recourse for financial and other compensation. The product liability claims that are most often seen in the United States are generally negligence, strict liability, breach of warranty and various consumer protection claims. Most product liability laws are determined and governed at the state level which means that they may vary from state to state - sometimes with a rather generous variance. Because of the nature of product liability, each claim requires different sets of elements that must be proven to present a claim that is valid and successful.

There are three general types of product liability claims:

* Those claiming a defect in design of a product
* Those claiming a defect in the manufacturing of the product
* Those claiming a seller or manufacturer's failure to warn of a product's potential hazard

A defective or dangerous product claim may be successful even in the event that the product was not used correctly by the consumer. This is generally true if the incorrect use was foreseeable by the manufacturer of the product or by another party in the chain of supply.

Even if the seller did not manufacture the product, they may still be held liable if any of the following criteria are met:

* The seller's business name is on the product. In other words, if the manufacturer made the product for a specific distributor and branded the product with that name or logo.
* The seller's business refurbishes, repairs, modifies or alters the product in any way.
* The seller imported the product from outside the European Union.
* The seller is unable to clearly identify the manufacturer of the product.
* The manufacturer of the product is no longer in business.

If none of these criteria are met then the liability falls to the manufacturer or to the processor if the product has parts that come from several manufacturers.

Strict liability shifts focus from the behavior of the manufacturer to the product itself. The manufacturer is liable if the product is defective under the strict liability laws even if the manufacturer was not the negligent party that caused the product to be defective. Strict product liability applies exclusively to manufacturing defects in the event that a product varies from the original intent of its design. It rarely is applied to defects pertaining to design and warning.

If you operate an online store where you sell or distribute products to various states and countries, it is a good protective move to include in the agreement that your buyers agree to upon purchase that all conflicts, claims and disputes be handled per the laws of your state of residence. This way you will avoid having to travel to other states (or further) to appear for product liability claims and be bound by the laws of that state or country as opposed to your own.

This site is for informational purposes only and does not replace professional advise.
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