5 Types of Product Liability Litigation All Corporations Should Know
Corporations that manufacture goods and sell to consumers are always at risk of potential product liability lawsuits. The rules and regulations of legal responsibility vary, but there are enough openings available that make consulting a commercial litigation lawyer a wise move. Below are five types of product liability litigation you could find yourself facing.
1. Standard Product Liability Claims
Items sold that are considered defective by the court in either warning, design, or manufacture fall under standard product liability rules. Anyone provably harmed by any of these three components can collect compensation for damages and injury. The overall burden of proof will vary by governing state. It will have to be proven to some level that product actually has a defect. The amounts collected will depend on the severity of injuries and made to fit within any location cap limits.
2. Breach of Warranty
A breach of warranty claim is not one that is taken up by courts in some areas unless it can be proven that there is direct privity between the consumer and the manufacturer of the product in question. In areas where the rules are less strict, privity by implication can cause a claim to go forward successfully. The implied or expressed guarantee of the condition and quality of a product can create a lot of legal headaches for manufacturers in some locations.
3. Tort-Based Legal Claims
A tort-based claim is typically the first cause of action in a product liability case. It will revolve around the defect of a product but often extends into negligence of the company in providing a defective product for public consumption. The defect can be a problem with the design, manufacture, or warning on a product, but negligence is proven by the inaction of a company to take the right measures to protect the individual, or buying public.
4. Consumer Protection
Another way that a corporation can suffer a huge financial ding in the legal area is by a consumer protection suit being filed that can multiply award amounts. It is an area that sees many class action suits filed since the burden of proof for actual injury is easier to achieve than with traditional liability legal actions.
5. No-Injury Claim
A prime example of a no-injury lawsuit that has seen the victory for consumers is when a product is found to be of lesser value than advertised. The awards are typically small but have many clients forming a class action suit. When taken countrywide, the amounts raked in by the attorneys bringing ht legal actions make plenty of money for legal fees, while handing out only small awards to the consumers.
Understanding and becoming knowledgeable of product liability laws in your area can help you avoid costly litigation down the line. Begin preparing a defense by creating a better and stronger offense. Discuss any concerns with a commercial litigation lawyer that understands your particular industry and the laws in your area.