Question

Background Facts You Need To Know: TLG has scheduled another meeting with the GC owners to further discuss the risks and liabilities of tort law. This meeting will focus specifically and only on product liability.

Winnie and Ralph asked you to participate in the GC meeting and to be prepared to discuss specific product liability risks related to GC's use and resale of EPI cleaning products.

Instructions

Report You Need To Prepare: Write a summary report addressing the following questions to use as a basis for discussion in the GC meeting with TLG and to educate GC owners about potential risks and liabilities under product liability law. Your report must focus only on product liability law.

A. Identify and explain the possible liabilities claims (EXCEPT omit warranty liabilities) GC could face under product liability law for reselling EPI cleaning products directly to customers from its public place of business.

Answer 1

Product liability refers to a manufacturer or seller being held liable for placing a defective product into the hands of a consumer. Responsibility for a product defect that causes injury lies with all sellers of the product who are in the distribution chain. In general terms, the law requires that a product meet the ordinary expectations of the consumer.

Apart from the warranty liabilities, the other liabilities can be under –

1. Handling – There can be an injury with the usage of the product, which can be attributed to customer or design or manufacturing defect.

a. The company will be held responsible if a design or manufacturing defect attributes to the injury. Design issues are more difficult to address as impact will be much higher.

b. Company can be held responsible if adequate warning is not clearly articulated on the product to safeguard the customer from any unwanted injury

2. Marketing – The way the product is showcased in a print or an online media Ad is also important, as it should give clear indicator on the usability (and precautions if any)

3. Functionality, Performance / Quality – The product need to clear the claimed tests else it can lead to product liability issues.