Liability Laws And New Products
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The tightening of liability laws in the United States in recent decades has had positive and negative effects on those who make new products. “Strict liability” means that if a consumer is injured by a defective product, they can sue the manufacturer even if they bought it from a retailer. An implied warranty moves along the purchasing chain with all consumer products, and the defect in the item proves the manufacturer to be negligent, even if the person wasn’t using the product as intended. It’s probably not surprising that consumers approve of such protection, since defective or badly designed products, such as water purification systems and filters, could result in dire consequences.
But one early result of the stricter laws was whole lines of consumer products being removed from the market. Some companies hired product liability professional legal counsel, hoping to avoid complying with tightening regulations. One of their arguments was that judgments shouldn’t be made based on scientific information that wasn’t even known about when the products were made. They also claimed the laws removed incentive even to develop new products.
As a result of the liability pressures on manufacturers of new products, many other companies took what was perhaps a more responsible route. Rather than decreasing or altogether ceasing new product research and innovation, they increased these activities. They actually spent more time researching how to produce better quality products, rather than seeking legal ways to avoid responsibility for producing those of lower quality.
Retailers and manufacturers often argue that strict liability laws on new products place no responsibility on consumers to use products properly. Furthermore, the laws stifle growth in the market. Those on the other side argue in their turn that if something protects users of a product from injury due to defects, then it’s ultimately a good thing. If these laws encourage manufacturers to produce superior products and prevent defective goods from being sold, they say, then this can only be beneficial.
Rene Lacape is a well trained insurance broker. He has been handling many kinds of insurances for the past many years. He still does well in his chosen field and is sure to help more people who will need his expert advice. Contact him now.
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