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02.03.2016

Products liability claims can threaten businesses

Businesses must confront formation issues, such as choosing a business structure, acquiring capital and hiring employees. Yet, even once they are established, businesses have a number of concerns with which they might have to deal. Amongst these is business litigation. Litigation itself can take many forms, and businesses should be aware of what they may be up against so that they can prepare a legal defense that seeks to protect their best interests. Failing to do so could result in thousands, perhaps even millions, of dollars in liabilities.

One common issue that results in business litigation is products liability. These types of claims can be based on strict liability, negligence or breach of warranty. Under strict liability, an injured consumer may be able to recover from a manufacturer or business if they were harmed by the product and certain elements are proven. To succeed on a claim, an individual must show that the product had an unreasonably dangerous defect, the defect caused the injury and the product was not substantially changed from its original condition at time of sale.

Defending against strict liability can be difficult. A manufacturer or business can certainly challenge the elements listed above, but it can also seek to prove that the consumer continued to use the product despite knowledge of the defect.

Businesses facing product liability claims may have a hard road ahead of them. Adequately preparing for litigation could mean the difference between a thriving business and financial ruin. Businesses that may be facing litigation may want to assess their options in an attempt to develop a strong legal strategy that seeks to protect their finances, reputation and future.