Business Finance
Product Liability

Question Description

I need support with this Business question so I can learn better.

After viewing the Chinese Imports & Food Safety Video, consider whether U.S. retailers that utilize products or raw ingredients that are imported from China and that are poorly regulated should be liable in tort for injuries to consumers who are harmed by those products. Answer parts 1 and 2 of the following question:

1. Answer part a or part b

  a. If U.S. companies should not be liable, then they could be legally exempt from tort liability. Discuss the consequences of such a policy to U.S. consumers.

  b. If the U.S. companies should be liable, then those companies would not be legally exempt from tort liability. Discuss the consequences of such a policy to U.S. businesses. 

2. Regardless of your response to part 1 of this question, assume that U.S. retailers do have legal liability for defective products. What steps could U.S. retailers and manufacturers take, when using products imported from China that would minimize their liability exposure? For example, they could warn consumers about the potential, though speculative, dangers when using products comprised of poorly regulated ingredients or components. Given your strategy, what challenges would exist for U.S. businesses that implemented your strategy?


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Final Answer

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University of Virginia

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