It is impossible to imagine all of the ways a product might be used in error. The smart business strategist accepts this fact and does what he can to create a product that is as safe as possible. Reasonable efforts must be made to protect even the most foolish of consumers. Yes, the term reasonable is vague but does not release us from liability.
The Breviary: Product liability is accepted risk of being an entrepreneur. Understanding the types of product liability risk can help you minimize consequences and increase satisfied customers. Gain control over your business by knowing the inherent risks in your products.
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If you are an entrepreneur or a small business owner then you are exposed to liability. Whether you offer a product or service, the risk is there. Product liability is unavoidable but it does not need to be harmful to creating your dream of sustainable success.
You have a great idea for a product. You dream of helping millions of people with your brilliant invention. Relieve pain, increase happiness, improve time management, increase quality of life, solve the world’s problems. This is the vision of every entrepreneur I’ve ever known. It is also true that I’ve never known an entrepreneur who accepted the downside of liability.
No product is perfect. Every product has hazards and unintended consequences for misuse. Most people think marketing is all about sales. The truth is that marketing is just as much about providing important information to the consumer and end-user. Marketing liability occurs when the seller of a product fails to promote the product in a way that properly informs consumers. This same situation occurs when mistakes are made in design or manufacturing of a product.