Business Law Assignment 6

Strict Liability and Product Liability

Take some time to examine the contours of

strict liability

, which is one of the strongest standards in

business law. In very few instances does the U.S. legal system mandate the imposition of strict liability upon

anyone. If strict liability is imposed on a party, it is because there is a serious and critical pub

lic policy

reason for doing so. For example, products that seriously maim, with demonstrable negligence, can fall

under the strict liability standard.

Product liability

is a more common concern for businesses. When a commercial party submits a product or a

service into the stream of commerce, then the commercial entity that created the product or service is

responsible, within certain boundaries, for any injuries or damages caused to anyone down the line. Courts

will always look at causation to determine wh

ether or not the product or service did, in fact, cause the

alleged injury and whether the injured party did anything that may have aggravated the injury or worsened

the results of the injury.

In both strict liability and product liability, society has dev

eloped the standards by which commercial parties

can be found liable not because there is any intent to hamstring the role of commercial organizations, but,

rather, to recognize that consumers are entitled to basic protections, especially when companies an

d

organizations are aware of the risks of the products and do little, if anything, to ameliorate or to address

those problems prior to submitting them into the stream of commerce.

Consumer Protection

Another key factor of business law is the notion of cons

umer protection. Consumer protection in the United

States is largely dependent upon the political winds in Washington, D.C. Organizations and agencies such as

the Consumer Product Safety Commission are only as strong and as effective in the performance of

their

duties as elected officials intend for those organizations to be. Indeed, federal and state agencies involved in

consumer protection are dependent upon annual appropriations that govern the size of their staff and scope

of their budgets

—

and, therefor

e, the reach of their responsibility and ability to address serious consumer

product issues.

Consider the impact of the global economy on the legal environment of consumer protection. When a

consumer in the United States is injured by a product manufacture

d in China or India, it is vastly more

difficult for a litigant in the United States to obtain damages from a party that is located in Mumbai or

Shanghai, as opposed to Minneapolis or Seattle. The courts have been struggling to determine ways to more

effec

tively streamline these cases so that litigants can receive recompense, but with the increasingly

international component to U.S. consumerism, this is a complicating factor that courts around the country

grapple with on a daily basis.

The Public Policy Nex

us

Some feel that tort law

—

and the judicial system in general

—

unduly exposes businesses to the reach of

frivolous lawsuits. In their eyes, so

-

called professional litigants abuse the system by seeking to obtain

damages from companies. However, in a more glo

bal context, with millions of products entering the stream

of commerce, the law recognizes a special duty on the part of manufacturers and retailers to not only

understand the risks and potential harms of those products, but also to implement sufficient wa

rnings,

safeguards, and protections for consumers.

Whether or not you question the vitality of the judicial system in enforcing consumer protection laws,

consider it in a public policy context. Be sure to recognize the vital role that politics play in the

strength of

consumer protections and in the resolution of tort lawsuits in the judicial system.

Strict Liability and Product Liability

Take some time to examine the contours of strict liability, which is one of the strongest standards in

business law. In very few instances does the U.S. legal system mandate the imposition of strict liability upon

anyone. If strict liability is imposed on a party, it is because there is a serious and critical public policy

reason for doing so. For example, products that seriously maim, with demonstrable negligence, can fall

under the strict liability standard.

Product liability is a more common concern for businesses. When a commercial party submits a product or a

service into the stream of commerce, then the commercial entity that created the product or service is

responsible, within certain boundaries, for any injuries or damages caused to anyone down the line. Courts

will always look at causation to determine whether or not the product or service did, in fact, cause the

alleged injury and whether the injured party did anything that may have aggravated the injury or worsened

the results of the injury.

In both strict liability and product liability, society has developed the standards by which commercial parties

can be found liable not because there is any intent to hamstring the role of commercial organizations, but,

rather, to recognize that consumers are entitled to basic protections, especially when companies and

organizations are aware of the risks of the products and do little, if anything, to ameliorate or to address

those problems prior to submitting them into the stream of commerce.

Consumer Protection

Another key factor of business law is the notion of consumer protection. Consumer protection in the United

States is largely dependent upon the political winds in Washington, D.C. Organizations and agencies such as

the Consumer Product Safety Commission are only as strong and as effective in the performance of their

duties as elected officials intend for those organizations to be. Indeed, federal and state agencies involved in

consumer protection are dependent upon annual appropriations that govern the size of their staff and scope

of their budgets—and, therefore, the reach of their responsibility and ability to address serious consumer

product issues.

Consider the impact of the global economy on the legal environment of consumer protection. When a

consumer in the United States is injured by a product manufactured in China or India, it is vastly more

difficult for a litigant in the United States to obtain damages from a party that is located in Mumbai or

Shanghai, as opposed to Minneapolis or Seattle. The courts have been struggling to determine ways to more

effectively streamline these cases so that litigants can receive recompense, but with the increasingly

international component to U.S. consumerism, this is a complicating factor that courts around the country

grapple with on a daily basis.

The Public Policy Nexus

Some feel that tort law—and the judicial system in general—unduly exposes businesses to the reach of

frivolous lawsuits. In their eyes, so-called professional litigants abuse the system by seeking to obtain

damages from companies. However, in a more global context, with millions of products entering the stream

of commerce, the law recognizes a special duty on the part of manufacturers and retailers to not only

understand the risks and potential harms of those products, but also to implement sufficient warnings,

safeguards, and protections for consumers.

Whether or not you question the vitality of the judicial system in enforcing consumer protection laws,

consider it in a public policy context. Be sure to recognize the vital role that politics play in the strength of

consumer protections and in the resolution of tort lawsuits in the judicial system.