From a small business owner’s perspective, it’s beneficial to know how product liability law may affect operations, especially if the organization engages in the public sale, manufacturing or distribution of products. Though issues like product defects and liability are usually associated with larger corporations, small businesses are equally bound by law.
Which Factors Go into Determining Liability for a Small Business Owner?
Most product liability claims are based on the theories of strict liability, warranty breach and negligence, with the latter being the most prevalent factor. Negligence may be proven when:
* A business owes the consumer a duty, such as selling safe products and warning of associated dangers.
* The business breaches the duty by not following regulations on product safety.
* The breach caused the plaintiff’s loss or injury.
* The injury or loss caused measurable damages.
If any of the above factors aren’t fulfilled, the business owner may use it as a defense and avoid liability altogether. Courts also consider such factors as whether the company tested the product adequately, or whether industry standards were followed. To protect themselves, small business owners should hire a product liability lawyer in Henderson, Nevada and they should keep up to date on standards and technological progress in their industry.
Avoiding Product Liability
No product can be absolutely safe; even those considered safe may be dangerous if used incorrectly. The most important step a business owner can take is to ensure that products have sufficient instructions and warning labels. Diagrams may be helpful, as may be translations into several different languages.
Liability can depend on the role played by a small business, and it’s possible for some business owners to be held liable if they use defective parts manufactured by different companies. When dealing with more than one assembler or distributor, it’s wise to negotiate a liability contract.
Hiring an Attorney for Product Liability Issues
Small business ownership can be a source of enjoyment and satisfaction, but business owners should take the time to protect their assets. Product liability suits can be avoided with planning, and by consulting a product liability lawyer in Henderson, Nevada for guidance.
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