The area of law known as product liability holds producers, sellers, and retailers who make products available to the general public accountable for the harm those products cause. If this happens, lawsuits will be filed and corporate lawyers will be all over the cases.
Although the term “product” has a wide range of meanings, the area of law known as “product liability” has historically only applied to items that are in the form of tangible, personal property.
Product liability, as defined by Section 102(2) of the Uniform Product Liability Act, includes all claims or actions brought for damages to people or property as a result of:
- Manufacture
- Design
- Formula
- Preparation
- Assembly
- Construction
- Testing
- Warnings
- Instructions
- Marketing
- Packaging
- Labeling of any product
Small businesses especially need to be aware of their obligations under product liability laws because of their constrained resources. This duty includes not only producing safe goods but also prominently stating any potential risks on goods and packaging.
State-specific legislation and the validities of each case will determine in large part whether an organization can be held liable for damages brought on by defective consumer items.
Product Liability Claims
Knowing where errors typically develop will help you as a business owner to prevent product defects. However, the plaintiff must demonstrate that the product was flawed and that this had negative effects. Defects typically manifest in three areas:
- Manufacturing defects: These are unintentional flaws that develop during a product’s creation. When the manufacturing process does not follow the desired design, this usually occurs.
- Design flaws: These errors occur even before the product is made. The design itself is flawed and inadequate to provide safety.
- Marketing defects: In relation to marketing flaws, you must warn the consumer if your business manufactures or sells products that are hazardous by nature. For instance, cigarette manufacturers inform their customers that smoking might cause cancer and even death. Smoking’s negative effects are clearly stated by the company even though everyone already knows.
Having competent product liability attorneys on your side can reduce your company’s risks. In case of product liability concerns, you can get in touch with them.
Additionally, business attorneys can assist you in sorting through the numerous federal and state laws that relate to various product categories as a small business owner. Furthermore, their expertise can help you resolve any legal issues you may have.
You can reduce product liability claims by taking preventative measures. There are times when a product liability lawyer is also referred to as a corporate lawyer or a small business lawyer. Your company may benefit from their services in the following ways.
- Put Together the Company’s Defence
A person who claims to have been hurt by your goods (the plaintiff) does not always have a right to compensation from you, the seller, or the manufacturer (the defendant).
A good product liability lawyer can defend your business and put forth a good argument. For example, a lawsuit for negligence or breach of warranty would likely be defeated by the defence that the plaintiff “assumed the risk” of his careless use of a product.
- Fact Investigation
When it comes to investigation, never speak with the plaintiff. Rather, let your attorney speak on your behalf. An attorney can help establish accurate facts by getting to the root of the issue. When faced with a product liability case, it is crucial that you get and keep all documents related to the case. Keep even the documents that seem unimportant.
Such records can enable a product liability lawyer to help you with your case. Depending on your industry, such records could consist of written materials as well as electronic data, including emails, webpages, pictures, videos, and voicemails.
- Argue the Case Before the Jury
Legal motions are used by your attorney to strengthen the presentation of your defence to the jury. As a producer or marketer, you may be innocent. But mere explanation and self-representation in the court will not be able to save your business.
Only a qualified business lawyer will be able to explain your case in a way that is constitutionally protected. Since a business attorney is experienced, they’ll be able to navigate the laws and give your business the best representation it needs.
- Arrange for Experiments if Necessary
You are not to have direct communication with the plaintiff. However, depending on your product, a corporate lawyer can help you insist on an experiment on your product with the plaintiff. This may prove that you are not responsible for the harm caused to the plaintiff even before going to court.
- Legal Analysis
Contacting a lawyer can enable you to weigh the severity of the case by analyzing the lawsuit. This is especially important if you are at fault. With this analysis, they will help you present a fair compensation offer that you can afford.
If your product liability lawyer is good enough, he may come up with a good settlement offer that will dissolve the case before it gets to the law court.
How Does a Business Lawyer Charge?
Not all lawyers charge their clients in the same way. Some charge by the hour and others on a contingency basis. On a contingency basis, if you win your lawsuit, your lawyer will receive a predetermined percentage of the settlement.
If your corporate lawyer works on a contingency fee basis, you most likely have a solid case because the attorney runs the risk of not being compensated at all for their efforts.
Moreover, your location and the complexity of your case will affect the fees you are assessed. Always discuss upfront billing and pricing with your attorney.
How to Prevent Product Liability Claims for Your Company
The manufacturer is in charge of ensuring that their goods or their parts are secure for usage by the general public. Although protecting your company from product liability claims may seem like a challenging endeavor, there are steps you can take.
- Invest in Product Liability Insurance
It is a brilliant idea for any business that produces goods and products to have product liability insurance even though it is not mandatory. When there is litigation, this coverage can be pretty helpful. The insurance may pay for the compensation that a plaintiff would get if the courts requested you to pay a fine as a result of the claim filed by the plaintiff.
However, not all product and liability insurances are the same. So before buying, you should consider your possibilities. Choose the policy that will provide your business with the best protection. Thoroughly review all coverage options, paying particular attention to the exclusions.
- Product Testing
Once a product enters the market, you could be tempted to cease testing it. The wisest course of action for your business is to carry on with the testing, nevertheless.
This can assist you in identifying any flaws and issues with the production, design, and application processes that may endanger your business. This improves your capacity for extensive testing to confirm that your business took the proper measures during the assessment phases to prevent product flaws. Remember to take thorough notes on everything.
As a conclusion
Many customers today sue companies after using products improperly and suffering harm. Therefore, it is advised that you get in touch with a reputable law firm that has experienced product liability lawyers.
Get one on your side to protect your business and save you from paying needless compensation. Lastly, don’t neglect insurance. If you do, you might have to always use even more money to make up for product damages.