Product liability law covers those cases where a party is sued for damage or injury caused by its product. Anyone involved in the product’s creation and distribution can be held liable, including the parts manufacturer, the assembler, the wholesaler, and the retailer, depending on the nature of the fault. It is important to note that product liability is an issue where motivation is not a factor – as a strict liability offense, a party can be held responsible regardless of good intentions.
Several of the largest product liability cases in US history are associated with products that have become infamous for the hazards they pose. A 2002 suit against cigarette maker Philip Morris and its insufficient warning labels resulted in a $28 billion penalty, while 1998 saw Dow Corning penalized $2 billion for the harm caused by rupturing silicone breast implants. Additionally, Owens Corning was required to pay over $1 billion over the carcinogenic asbestos it used as building material.
The possibility of product liability suits has resulted in many manufacturers becoming more proactive in responding to potential hazards. For instance, the recall listings for children’s products at www.safekids.org/product-recalls, features many items that have not actually been reported as hazardous, but fit established patterns of known hazards. Since ignorance is no defense in a product liability case, issuing recalls of a dangerous product before a harmful incident occurs is not only a demonstration of good ethics, but good business practice as well.