Suppose you have just begun a position as an upper-level manager at a local busi

Question

Suppose you have just begun a position as an upper-level manager at a local business that is recovering from a large product liability suit. Criminal charges may yet be filed against the company as a result of this suit. You have been hired, in part, to help write policies that might minimize criminal issues within this company. What three policies would you immediately implement to protect the company from further damage? What three policies would you implement to prevent further lawsuits of any kind?

Explanation / Answer

Product Liability means the responsibility of a manufacturer or vendor of goods to compensate for injury caused by defective merchandise that ithas provided for sale.

When individuals/users/customers are harmed by an unsafe product, they may have a Cause of Action against the persons who designed; manufactured, sold, or furnished that product is called as law suit.

Theories of Liability

As a senior manager and looking to the current situation of the company, you have to take some important steps which will able to minimize the criminal issues. You can adopt these theories and policies to minimize the criminal issues you have to be careful for the following three theories like:

·         Negligence

·         Breach of Warranty

·         Misrepresentation

Negligence refers to the absence of, or failure to exercise, proper or ordinary care. It means that an individual who had alegal obligation either omitted to do what should have been done or did something that should not have been done.

A manufacturer can be held liable for negligence if lack of reasonable care in the production, design, or assembly of themanufacturer's product caused harm

Breach of warranty refers to the failure of a seller to fulfill the terms of a promise, claim, or representation made concerningthe quality or type of the product. The law assumes that a seller gives certain warranties concerning goods that are sold andthat he or she must stand behind these assertions.

Misrepresentation in the advertising and sales promotion of a product refers to the process of giving consumers falsesecurity about the safety of a particular product, ordinarily by drawing attention away from the hazards of its use.

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