Damage Awards Should Be Capped for Product Liability Suits - Research Paper Example

13th April Damage awards should be capped for product liability suits In the contemporary world stiff competition has resulted to diversification of products as companies try to outdo their competitors in the market. Even though majority of the companies ensure high quality products that meet the needs of their consumers, the high number of dangerous and defective products has become a major concern especially in the US market. This is based on the thousand of injuries and deaths that are reported every year in the US market (Kinzie and Mark 19). Compensation for damages Consumers are entitled for compensation for damages caused by the use of a defective product. This implies that if consumers are injured or suffer because of a product they purchase and use, they should possess a defective products claims. One of the key aspects of a product liability claim is determining the amount and the type of damages that a consumer suffers after using a product. Due to the complexity of determining the compensation, it is imperative for consumers to estimate their damages up front. For instance, if the consumer suffers minor injuries and the financial losses incurred are insignificant, then it implies that it is unnecessary to initiate a claim. In the same way, consumers who suffer fewer damages have a less chance of finding a lawyer as compared to those who incur significant damages. Customers who suffer significant damages are advised to catalog and list the damages at the beginning of their lawsuit (Kinzie and Mark 21). Parties responsible for defective product The responsibility for a defective product lies with a manufacturer or anyone who supplied the product. On the part of the manufacturer, he is responsible for producing the product that causes damage to the consumer. In the same way, the initial design of the product may be of poor quality, thus resulting to the defects during the production process. Additionally, poor marketing by the manufacturer, making of misleading claims and lack of providing the correct information regarding the product makes the manufacturer to be responsible for a defective product. Once the products are distributed from the manufacturer to the retailers, the retailer can also be held responsible. It is important to note that if a manufacturer is no longer operating his or her business or it becomes difficult to identify the source of a defective product held by a retailer, consumers can seek for compensation from the retailers. This implies that all the members of the distribution channel have an obligation of ensuring that products they handle are safe (Moore and Michael 26). Despite that consumers are the major victims of a defective product, it is fundamental for courts to undertake extensive investigation before compensation for damages. This is based on the fact that some consumers may give untrue information that may result to defamation of the manufacturers thus jeopardizing their operations locally and in the international market (Kinzie and Mark 45). Individuals harmed by defective products A defective product harms the consumer who directly purchases and uses it. In addition, if a consumer is given a defective product by someone else he or she is harmed and can seek for damages from the responsible party. Defective products can also harm a close friend or a spouse thus resulting to an indirect harm (Feinman 21). Types of damages that require compensation As mentioned earlier, consumers are at liberty to seek for monetary compensation for damages caused by defective services or products supplied by the manufacturers or retailers. There are two types of damages namely indirect and direct damages. Direct damages entail expenses arising during the purchasing process of the defective products. For example, telephone, postal and travelling expenses. This means that if a consumer returns a defective product to the supplier he or she should be compensated for the defects as well as the travelling expenses. In case the seller fails to rectify a defect on a product despite being given a chance to do so by a consumer this also amounts to damage (Deakin and Angus 31). Indirect damages arise in cases where a business performs its duties in a negligent way. In such a scenario, a consumer can seek compensation for the loss of utility. It is vital to note that even if a consumer does not suffer a monetary loss, he or she is entitled to reasonable damages if the defects on the products generate a significant harm. Income lost due to the breach of the contract between the seller and the consumer also results to an indirect damage. For example, if the seller delays to deliver an electrical appliance to the consumers despite the consumer having hired an installation expert he or she can claim for damage due to the money paid to the expert (Moore and Michael 27). Role of law in Consumer protection In order to ensure that defective products do not harm consumers, the law requires that products should generally meet the expectation of the customers. In addition, it is manufacturer’s legal obligation to inform the users of the risks associated with their products or services. One of the major regulatory bodies that ensure consumers are protected against the harmful products is the Consumer Product Safety Commission (CPSC). One of the responsibilities of CPSC is to protect the consumers from the dangerous products thus mitigating the injuries and death of the customers. Having being established in 1972 by the Consumer Product Safety Act, CPSC other tasks include undertaking research on potential hazards that may be generated by the products before they are used by the consumers. Secondly, the agency oversees quality standards within the production industry. Thirdly, it bans the use of products if manufacturers do not depict strict application of the mandatory standards that are focus at protecting their consumers. Fourthly, CPSC recalls any products that are proved to be defective once they are purchased by the consumers. Fifthly, the agency educates the consumers on the products that are in the market. This duty is undertaken through the corroboration with state, media, private firms as well as local authorities (Feinman 56). Based on the fact that federal and state laws limit the duration within which consumers should seek for compensation, it is vital for the consumers to seek help from product liability lawyer. In this way, it becomes easier for the consumers to determine whether their defective product liability claim is valid. On their part, manufacturers should ensure that the plaintiff who the customers in this case, make claims for compensation within the stipulated time. This will not only avoid extra costs incurred during compensation but also it can act as a defense in a court of law (Moore and Michael 27). Role of law in case product are not defective as depicted Even though Consumer Protection Act (CPA) is not flexible in its duties of ensuring that manufacturers are compliant with the set standards, producers can adopt a number of defenses in their efforts to prove that the products are not liable to the damages caused to their consumers after the use of the products. First, the manufacturers can defend themselves by showing that they produced the defective products to comply with the international or domestic law. Secondly, a producer can defend himself by showing that he or she was not responsible for the supply of the product that caused harm to the consumer. Thirdly, according to the CPA, it is a defense to prove that the defect that caused the harm did not exist at the time the product was distributed in the market. Fourthly, the producing company can defend itself by proving that the product was not supplied or manufactured in the course of their business operations (Moore and Michael 8). Compensation for the damages Compensation for the damages takes two forms that include compensable personal injury and compensable property damages. Compensable personal damages entails medical costs, aches, lost income, as well as permanent injuries. On the other hand, compensable property includes costs incurred during repair, value of destroyed property among others. The major aspects that consumers should not overlook during claiming for compensation is that first, they should show an evidence of injury or damage. Secondly, they should indicate the defective nature of the product that they have consumed. Thirdly, consumers should show the relationship between the defect of the product and the damage they incur. The section below indicates some of the compensation that relates to various damages (Moore and Michael 61). Cost of disability: If a consumer incurs an injury that makes him or her to change the lifestyle it is vital to seek for compensation that caters for the expenses incurred during the adjustment. For instance, if a customer hires a house help or someone else to renovate his building, this extra costs should be included when seeking for compensation (Feinman 37). Loss of wages: Consumers who incur injuries that cause them to lose wages as a result of the injury are entitled for compensation (Deakin et al 27). Medical expenses: These entails doctors fee, hospital expenses among others. Consumers who suffer injuries that make them to seek regular medical check up should demand for compensation to cover future medical expenses (Moore and Michael 38). Pain: Due to the intangible nature of pain, it is essential for consumers to seek the assistance of lawyers in order to have a better idea of the amount of compensation such an injury requires. On their part, lawyers estimate the amount of compensation by comparing the case of their client with the similar cases that they have dealt with in their past assignments (Feinman 37). Loss of relationship: This is an injury that causes negative relationship between spouses. In such cases an individual can seek for compensation for loss of society also referred to as loss of consortium (Deakin et al 49). Federal product liability law Product liability law falls under the category of tort law. The law refers to the claims that are initiated by consumers against members of the supply chain especially the manufacturer and the retailer due to the harm caused by defective products. According to Product Liability law, a plaintiff can claim for compensation based on the four key legal theories as discussed on the section below (Feinman 23). Breach of implied or expressed warranty Express warranty entails the warranty that the manufacturer or the retailer states in writing or through oral means. For example, a warranty can be written on the adverts, packaging materials or written on the product itself. In case a defect violates the expressed warranty, the consumer is eligible to initiate a defective product claim. On the other hand, an implied warranty entails automatic application of law regardless of whether or not the manufacturer expresses it. Implied warranty can be categorized as either implied warranty of fitness or implied warranty of merchantability (Feinman 23). Negligence This implies that the manufacturer, retailer or any other party within the channel of distribution failed to exercise reasonable care thus resulting to the defects that harms the consumer. For negligence to exist there must be a duty of care and the consumer must prove that the responsible manufacturer or retailer owed him or her the duty of care (Deakin et al 56). Strict Tort liability According to the theory of strict tort liability, the plaintiff does not need to show negligence on the party responsible. The harmed consumer should only indicate that the harm he or she experienced was as a result of the defective product (Deakin et al 56). Intentional misrepresentation This means that the responsible party was aware of the risks of using the products, but he hinds this information and proceeds with selling the defective products to the consumers. Product Liability Law stipulates that for product liability claim to hold, a product must depict three types of defects. The section below discusses the major defects the results to a defective product (Feinman 56). Design defects This implies that the defects that resulted to a defective product were caused by defects on the design that was adopted during the manufacturer’s production process (Feinman 23). Manufacturing error This implies that the final products do not match with the design specifications. Mostly occurring during the manufacturing or constructing process, manufacturing errors can be caused by missing parts, improper assembly of the various components that make the final products or loose parts (Kinzie, Mark 24). Failure to give warning This means that the manufacturer or the retailer did not give appropriate instructions and warning to the consumers thus resulting to the injury (Kinzie and Mark 28). How to know a defective product In their efforts to attract more customers, organisations undertake extensive advertisement that encompasses wide range of information covering positive aspects of products. In this regard, it becomes a challenge to determine whether or not a product is defective. It is imperative to note that manufacturers are in the best position to give the harmfulness or benefits of a product. As consumers, it is our duty to seek for more information regarding a product in order to know whether a product is defective. Even though it is not possible to find everything, it is vital to seek for the assistance of an expert before buying a particular product. For example, before a consumer purchases a motor vehicle it is appropriate to seek help from a mechanic who undertakes thorough inspection. Such experts are especially vital during purchasing of drugs from chemists. Another way of gathering information is by physical checking. For instance, checking the expiry date of a product, checking the parts of furniture and how firmly they are fixed (Kinzie and Mark 19). Another way of knowing if a product is defective is by contacting a business bureau or a federal agency. Based on their expertise as far as standards are concerned, they are in a better position to guide us before we buy our products. The repercussions of using a product can also be used to determine if a product is defective. However, this may require the services of professional such as doctors, engineers, surgeons among others (Lewis and Eigen 23). Solutions One of the major ways of curbing the circulation of defective products in the local and international markets is to implement strict legislations. Based on the fact that most of the companies are focused at going global, there is need for countries to corroborate and come up with international rules that will through scrutinizing of products released in the market. Additionally, heavy fines should be imposed on the companies that release defective products thus resulting to their consumers incurring heavy losses. In the same way, organization should ensure that ethics are not compromised in the production facilities. It is imperative to note that some production personnel are either ignorant or are not fully aware of their working ethics. As a result, they perform their function without seeking the guidance of their seniors thus producing large quantity of defective products (Lewis and Eigen 7). Installation of product defect tracking solution is another fundamental strategy that companies should emulate. For example, local and international firms can install KeyTone’s solution, a defect tracking device that captures data on any deviation during the production process. In addition, KeyTone’s can eliminate errors that occur during assembly thus ensuring that the final products match the initial design. Such tracking systems however can be expensive at the installation stages but the future benefits will ultimately offset the initial costs (Lewis and Eigen 12). Consumer’s education is another major strategy that governments should emphasize. It is due to lack of adequate knowledge that makes consumers to purchase expensive but defective products. In this regard, governments should allocate more funds to ensure that members of the public can access vital information that relate to the major products in the international market. This strategy can be done through social sites such as face book and twitter, magazines, television and newspapers (Moore and Michael 45). Works Cited Deakin, S., Angus J., Basil M. Markesinis and Deakins Tort Law. Oxford: Oxford University Press, 2003, Print. Feinman, J. Law 101. New York: Oxford University Press, 2010, Print. Kinzie, Mark A. Product Liability Litigation. New York: West/Thomson Learning, 2002, Print. Lewis D. Eigen, A Solution to the Problem of Consumer Contracts That Cannot be Understood by Consumers Who Sign Them. London: Sage, 2009.Print. Moore, Michael J. Product Liability Entering The Twenty-First Century: The U.S. Perspective. Washington, D.C.: AEI-Brookings Joint Center for Regulatory Studies, 2001, Print. Read More