Question

Analyze and explain specifically how and why GC could face risks under product liability for reselling EPI cleaning products directly to customers from its public place of business.

Answer 1

GC could be at risk under product liability for selling EPI cleaning products to customers from its place of business due to the fact that any party who make, sell or lease products can be held liable for the physical harm or property damage caused by that product to the consumer, user or bystander based on product liability. Product liability applies to the product manufacturer, manufacturer of component parts, whole sale, retailer etc. The type of product liability would be a strict product liability here if any harm occurs due to the cleaning product as they have sold the product from its public place of business. Strict liability would make GC liable for the product defect regardless of their intentions or their exercise of reasonable care. The seller should have sold the product in the regular course of business for the strict product liability to apply. When GC resells the product from its public place of business it would mean that they have sold the EPI cleaning product in the regular course of business and makes GC liable under strict liability in case of harm.