Problem
Prohibitive cost of product liability protection
Nature:
The producer, importer or supplier of a product passes on to the consumer the high cost of protecting himself against litigation for damage cause by a defective product. Legal costs include insurance and fees for lawyers. In the USA, awards by courts for injury has risen at an exorbitant rate. Defensive measures increase the cost of a product. Additional and unnecessary medical tests might be conducted to protect against medical malpractice suits. Industries may be made internationally uncompetitive because of these increased costs.
Broader Problems:
Unclear liabilityPredatory litigationProhibitive cost of insuranceProhibitive costs for businessesProhibitive administrative overhead costs for aid Related Problems:
Increase in insurance claims for medical negligence Aggravates:
Inadequate defence Strategies:
Guaranteeing insurance provisions References:
Bass, Lewis J D: Product Liability: design and manufacturing defectsCartwright, Robert E and Phillips, Jerry J: Products LiabilityPhelan, Richard J and Ross, Kenneth: Product Liability: warnings, instructions, and recalls 1984Herzog, Peter E: Harmonization of Laws in the European Communities: products liability, conflict of laws, andFreedman, Warren: International Products Liability Subject(s):
Commerce → Purchasing, supplying??Industry → Products??
Societal Problems → Protection??
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
13.08.2019 – 16:56 CEST