Has your company been subjected to Product Liability claims? Are you aware of current product liability laws? Educating yourself and connecting with the proper product liabilty agencies can help your company save money, now and in the future.

Each year thousands of housewares manufacturers struggle with product liability issues. As a product manufacturer, it is important that you are pro-active in addressing product liability standards to help limit the number of possible claims.

To better understand the issues surrounding product liability, please refer to the information below. Links to specific agencies and resources are provided to help protect your company's bottom line and increase consumer safety.

Definition:
Products liability refers to the liability of any or all parties along the supply chain of any product for damage caused by that product. This includes the manufacturer of component parts (at the top of the chain), an assembling manufacturer, the wholesaler, and the retail storeowner (at the bottom of the chain). Products containing inherent defects that cause harm to a consumer of the product, or someone to whom the product was loaned, given, etc., are the subjects of products liability suits.

The Law
Products liability claims can be based on negligence, strict liability, or breach of warranty of fitness depending on the jurisdiction within which the claim is based. Many states have enacted comprehensive products liability statutes. These statutory provisions can be very diverse such that the United States Department of Commerce has promulgated a Model Uniform Products Liability Act (MUPLA) for voluntary use by the states. There is no federal products liability law.

Types of Product Defects
In any jurisdiction one must prove that the product is defective. There are three types of product defects that incur liability in manufacturers and suppliers: design defects, manufacturing defects, and defects in marketing. Design defects are inherent; they exist before the product is manufactured. While the item might serve its purpose well, it can be unreasonably dangerous to use due to a design flaw. On the other hand, manufacturing defects occur during the construction or production of the item. Only a few out of many products of the same type are flawed in this case. Defects in marketing deal with improper instructions and failures to warn consumers of latent dangers in the product.

Online Resources:

Insurance Risk and Protection

Testing Facilities

Government Information on Safety (including product recalls)

For more information on Product Liability please contact:

Dean Kurtis
IHA
Phone: 847-692-0119
Email: dkurtis@housewares.org