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Product Liability Tort
RISK AND RESPONSIBILITY
A tort is a civil wrong, loss or harm inflicted by a person's behavior upon another (LII, 2010). While it is not necessarily an illegal act itself, the law allows the person harmed to recover his loss or receive compensation for the harm. It differs from a crime wherein the person's harmful act affects society in general. A claim of tort may be filed in a civil court. The three main elements of a tort are duty, the breach of that duty, and the injury or harm caused by the breach. The four main types of torts are intentional, negligence, strict liability, and nuisance. One type of negligence torts is products liability (LII).
Products liability can be incurred by any or all of the persons involved in the manufacturing chain of a product for the damage it causes (LII, 2010; Lim, 2012). It may be the manufacturer of the components, the assembling manufacturer, the wholesaler, or the retail store owner. The claimant must prove the defect of the product. The three types of product defect are design, manufacturing and marketing defects. Design defects exist before the product is manufactured. Manufacturing defects occur during the construction or production phase. And marketing defects consist of improper instructions or failure to instruct and warn consumers of potential dangers in the use of the product. The claimant must also show or prove that the product was not altered from...
Non-Linear Pro-should have known that unless the equipment was digitized, it would not perform that fast. The equipment was much cheaper than that of A-Line clearly because it would not function as A-Line equipment would. Another marketing defect is the lack of warning label for the piece of metal, which wounded the finger of Hal's companion. This can be the basis of a claim for personal injury and possible health consequences. The breach of warranty and guarantee that the equipment would run twice as fast are another marketing issues. The resulting loss of productive hours in Quick Takes Video laborers for trying to operate the defective equipment was still another issue. Manufacturing defect -- the insufficiency of the product's memory after only a few minutes' use at high resolution and constant crashes. The system itself is defective. It also has a lot of bugs.
Applying the Risk Management Process
The rationale of Enterprise Risk Management or ERM is well-grounded on facts. These are corporate failures, limited resources and capital; only 25-40% of risks are insurable; global economic…
BIBLIOGRAPHY
Harb, T. (2008). 7 essential elements of ERM and the role of internal audit. The Institute of Internal Auditors. Retrieved on December 29, 2012 from http://www.inconsult.com.au/Articles/Essential%2520elements%2520of%2520role%2520of%2520Internal%2520Audit.pdf
LII (2010). Products liability. Legal Information Institute: Cornell University Law
School. Retrieved on December 30, 2012 from http://www.law.cornell.edu/wex/products_liability
Lim, K. (2012). How can businesses reduce product liability risks? Globial International
Business Team. Retrieved on December 30, 2012 from http://globial.com/globialtalksbusiness/how-can-businesses-reduce-product-liability-risks
Mitsubishi should also be transparent about any defect error that comes in their product. In this way, they would be able to avoid the gigantic loss, which occurs in case a company's product line fails, or a company faces lawsuits in case of a defective product. Conclusion Organizations have the ultimate responsibility to make sure that the product they manufacture is free from any fault. Products manufactured should be free from risks.
(O'Reilly, 2003, p.2) But the company is not legally liable if it did all necessary testing, warning, and reasonable evaluation of safety, if for example, an unexpected result occurs through the use of the product. O'Reilly finds the reasonable person standard troubling, as the reasonable 'average' consumer will not have specialized knowledge that a manufacturer should have about the product he or she is selling. He believes government agencies have
... If gun manufacturers are responsible for violence, why not the makers of the steel used in the guns?" (Levy, 2004, p. 80) The application of the principles of assumption of risk and product liability to incidents that are ever more removed from the ideal usage of the product or service eventually creates a situation in which all are liable for everything and everyone. The notion of choice upon which assumption of
Small Business' Need for a CPA One of the critical investments a small business can make to mitigate loss and risk is hiring a CPA and putting that CPA on the 'management team.' As Wells notes in his groundbreaking research, "Denise, a bookkeeper for a small trucking firm in Birmingham, Alabama, wishes she had never heard of Ralph Summerford, CPA. Because of his thoroughness, Denise is facing several years in prison
Fault: An Alternative to the Current Tort-Based System in England and Wales The United Kingdom statistics regarding claims THE NATIONAL HEALTH SYSTEM OBSTACLES TO DUE PROCESS THE CASE FOR REFORM THE REGULATORY ENVIRONMENT THE RISING COST OF LITIGATION LORD WOOLF'S REFORMS MORE COST CONTROLS THE UNITED STATES PAUL'S PULLOUT THE INSURANCE INDUSTRY TORT REFORM IN AMERICA FLEEING PHYSICIANS STATISTICS FOR ERROR, INJURY AND DEATH THE CALL FOR REFORM IN 2003: A FAMILIAR REFRAIN THE UNITED STATES SITUATION, IN SUMMARY NEW ZEALAND CASE STUDIES THE SWEDISH SCHEME COMPARISON: WHICH SYSTEM IS
A related case of Toxic Torts occurred in East Anglia, where chemicals from a factory seeped into a dam (Barcelona Field Studies Centre, 2009). The best risk management method is prevention. While Alumina's current situation is somewhat dire, the company can learn from its mistakes and attempt to prevent the same thing from occurring in the future. One measure that can be taken in this regard is to fully assess