New products or lower-cost versions of existing products can help companies turn a profit. However, every new product does come with a degree of risk for the business. Specifically, companies can sometimes unintentionally release products that are not safe for consumers.
Consumers may end up injured or dealing with massive property damage losses because of a dangerous or defective product. In some cases, the people harmed by dangerous products may have grounds to take legal action against the organization that manufactured or distributed them.
When are businesses potentially liable for the harm caused by their products?
After negligent product development or testing
Developing a new product or improving an existing one is a lengthy and involved process. Manufacturers typically spend months testing prototypes and making changes to ensure that the product functions as intended. Faulty wiring combined with a plastic exterior, for example, could lead to house fires. Not only does a product need to work as intended, but it has to be reasonably safe to use. Businesses often have to test products under a variety of different circumstances, including common ways that consumers might abuse or mistreat those products.
After issues arise in production facilities
Sometimes, the design of a product reflects a substantial investment on the part of a manufacturer. The product may very well perform the exact functions the manufacturer advertises even in cases involving aggressive treatment or repetitive use of the product. However, issues at a manufacturing facility might lead to problems with the final product. Employees on the production line can potentially turn out individual units that are not as safe as the standard product released by an organization.
After issues with materials
Perhaps a manufacturer uses components provided by a third-party supplier. If the company fails to test individual components from each batch received from a supplier, the business may not identify when it receives a defective batch. That could result in the organization releasing defective products to consumers. Other times, organizations may not use prefabricated components but may instead develop products from scratch at a production facility. A change in the quality of the materials provided by suppliers could lead to unexpected product failures. For example, the substitution of a cheaper, lower-quality form of Steel might lead to parts of a product breaking under intense pressure or heat.
In scenarios where reasonable people agree that a manufacturer could have identified and prevented a product defect, a business may be liable when products fail and then cause losses for consumers. Initiating a product defect lawsuit can potentially compensate people for injuries, lost wages and property damage losses, such as when a product has faulty wiring and causes a house fire. Businesses that release dangerous products are often liable for the damage those products cause.