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Product Liability Management

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Product Liability Management

Some critical planning before introducing a product into a marketplace can drastically limit the potential for lawsuits later on. Marketing language must be carefully worded to avoid inadvertently issuing warranties. A manufacturer’s knowledge of past experiences with a product should be used to prepare cautionary and limited warranty language. The federal government and many states regulate the sale of certain products.

A manufacturer must first become aware of whether their product is regulated, then understand what it must do to comply prior to selling in that market. The terms and conditions of sales to distributors and to end buyers is key to establishing the extent of the manufacturer’s responsibilities after the sale takes place. Matters as basic as identifying the parties actually involved in a sale (and in turn parties responsible for product liability) can become murky unless carefully established by agreement.

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