Understanding Product Liability: What You Need to Know as a Business Owner

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Have you wondered who is liable in a product liability case for a product that causes harm or injury? The answer can be complicated. The principle of product liability holds manufacturers, distributors, and sellers accountable for defects in the products they make or sell. But what exactly does that mean for you as a consumer or business owner?

In this blog post, we’ll dive into product liability, the types of defects that lead to claims, and how the law ensures you can seek compensation if a defective product injures you.

What is Product Liability?

Product liability refers to the legal responsibility manufacturers, sellers, and distributors must ensure that the products they produce and distribute are safe for consumer use. If a defect in the product leads to an injury, the responsible party can be held liable. As a consumer, you have the right to expect the product you purchase to be safe when used as intended.

Three main types of product defects can lead to liability claims:

  1. Design Defects
  2. Manufacturing Defects
  3. Failure to Warn

Let us break down each type.

Types of Product Defects

1. Design Defects

A design defect occurs when the product is inherently dangerous due to its design, regardless of how well it has been made. Even if the product is produced flawlessly, its basic design makes it unsafe. A classic example of this would be a car prone to tipping over during sharp turns due to its design. The flaw lies in the design itself, which creates an unreasonable risk, even if the manufacturing process is perfect.

2. Manufacturing Defects

Manufacturing defects occur during the production process. While the product’s design may be safe, something goes wrong in the manufacturing or assembly of the item. For example, a batch of toys may contain loose parts that children could easily swallow. In this case, the design was safe, but a mistake in production led to a dangerous product.

3. Failure to Warn

Manufacturers are also required to warn consumers about potential dangers that are not obvious. If a product has hidden dangers, such as a cleaning chemical that could harm you when inhaled, the manufacturer is legally obligated to provide clear warnings and instructions. Failure to include these warnings or instructions could lead to a product liability claim.

Key Considerations in Product Liability Cases

It’s important to note that not every accident will result in a successful product liability claim. To establish liability, the injured party must demonstrate that the product was being used as intended or in a reasonably foreseeable way. If you misuse a product in a manner that the manufacturer could not have anticipated, you may not have a valid claim.

Additionally, the chain of distribution plays a crucial role in product liability cases. This chain includes everyone involved in the product’s journey from manufacturer to retailer. If a defect occurs at any point in the distribution chain, each party—whether the manufacturer, distributor, or retailer—could potentially be held responsible.

However, as a consumer, you also have a responsibility. If you fail to follow the product’s instructions or warnings and this leads to injury, liability may shift to you. This is why it is always important to read labels, follow guidelines, and use products as intended.

Real-Life Example: The Case of Mark and the Energy Drink

To illustrate how product liability works, let us look at a real-life example. Mark, a client of mine, purchased a popular energy drink from a local store. When Mark opened the can and took a sip, he noticed it felt unusually heavy. After cutting the can open, he discovered a dead mouse inside. Shocked and horrified, Mark immediately began vomiting and rushed to the hospital, fearing he had contracted a disease.

Thankfully, Mark’s health was not significantly affected, but he did suffer from the stress, hospital visit, and emotional trauma caused by the incident. Fortunately, Mark had the receipt for the drink and opened it in front of witnesses. He even filmed the process and sent the can off to a lab for testing to confirm it had not been tampered with.

To pursue Mark’s case, we had to trace the can’s journey from the manufacturer all the way to the store where Mark bought it. After a thorough investigation, the case was resolved out of court, and Mark was compensated for his injuries.

Protecting Consumers and Holding Businesses Accountable

Product liability laws are designed to protect consumers from injuries caused by defective products, ensuring that manufacturers, distributors, and sellers take responsibility for the safety of the products they create and sell. By understanding your rights as a consumer and the types of product defects that can lead to liability, you can better navigate situations where things go wrong.

If you or someone you know has been injured by a product you purchased, you may have the right to seek compensation. At Parrish & Goodman, we offer free consultations to review your case and discuss your options. If your case has merit, we will fight to get you the compensation you deserve. If it does not, we will let you know upfront.

Do not hesitate to contact us if you have been injured by a defective product. Let us help you navigate the legal process and hold the responsible parties accountable.

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