How can you protect yourself from product liability?

How can you protect yourself from product liability?

How to Protect Your Business From Product Liability Claims

  1. Product Testing. You may feel inclined to stop the testing of any particular product once it hits the market.
  2. Incorporate Safety During the Build and Design Stages.
  3. Purchase Product Liability Insurance.
  4. Check Your Suppliers.
  5. Hire Legal Counsel.

How do I protect my distributor?

The only protection a distributor has is contractual: what terms in your contract protect you from termination and for how long; and what payments may be due upon termination. Clearly, the longer the contract, the better. Some contracts provide for an “endless” term so long as certain sales levels are maintained.

In what ways can a company protect itself from a product liability suit which ways are most practical?

A company that can show that they do the following will better protect themselves from lawsuits: Conduct effective product testing on their products. Retest products often. Recall products quickly….Your business must implement procedures to:

  • Review supplier products.
  • Review supplier procedures.
  • Review supplier processes.

What do distributors do?

A distributor is an entity that buys noncompeting products or product lines and sells them direct to end users or customers. Most distributors also provide a range of services such as technical support, warranty or service. Distributors are essential in helping reach markets manufacturers could not otherwise target.

Can distributors sell competing products?

A distributor selling a private-label product manufactured specifically for that distributor is, in effect, a competing manufacturer! When they can, these distributors will sell their private-label products to pay for these investments. Your “encouragement tactics” will not refocus their sales efforts on your brand.

How do you manage a distributor?

Here are a few ways you can set your distributors up for success and ensure a lasting and fruitful business relationship with them:

  1. Educate your distributors about your products.
  2. Provide quick and easy access to necessary documentation.
  3. Create well-branded sales and marketing collateral.
  4. Send them leads.

What are three theories causes of action under which someone can be sued in a products liability case?

If you are injured by a product, there are three avenues by which you may recover compensation. These are: (1) Breach of warranty; (2) Negligence; (3) Strict liability.

What 3 doctrines can be claimed in a typical product liability case?

To succeed on a claim for defective design the plaintiff must plead and prove: (1) the Defendant’s relationship to the product in question; (2) the defective and unreasonably dangerous condition of the product; (3) the existence of a causal connection between the product’s condition and the plaintiff’s injuries or …

Why do we need distributors?

They are the connecting link between manufacturers and retailers or consumers. One of the key responsibilities of a distributor is of moving the products. The right distributor enhances a company’s exposure in the product market and can give an edge in terms of speed and efficiency.

What are the limits to product liability?

In California, if you have been injured by a product, you have two years to file a lawsuit from the time you knew or should have known about your injury. The California product liability statute of limitations is two years. This means that a person who has been injured by a product has two years to file a lawsuit.

How do you negotiate with a distributor?

Six Rules for Negotiating a Better Distribution Agreement

  1. Balance. Balance in a distribution agreement ensures that neither party holds unfair power over the other.
  2. Due Diligence.
  3. Annual Termination and Semiautomatic Renewal.
  4. Comparison with Proven Industry Agreements.
  5. Four Eyes versus Two Eyes.
  6. Cause and Convenience.

How can I improve my distributor performance?


  1. SIMPLIFY THE FEEDBACK. Continuing to blindly provide sales leads to distributors, with no understanding or indication of their value to them, wastes money and frustrates everyone.

Who can bring a products liability lawsuit?

Generally, any manufacturers as well as any sellers down the distribution chain (i.e., distributors, wholesalers, and retailers) can be held legally responsible for a defective product causing injury.

What are the 7 defenses to product liability?

Common Product Liability Defense Strategies

  • Outside Statute Of Limitations.
  • Lack Of Standing.
  • No Duty Owed.
  • Modification.
  • Misuse.
  • Assumption Of Risk.

What must a plaintiff show do you prove that a manufacturer is strictly liable?

In other words, the plaintiff must prove (1) that the product was inherently defective and (2) that the defect in the product caused the injury or damage.