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Retailers will keep Product Liability Insurance and make sure their suppliers have the same for this very reason. When a claim arises there are 2 perspectives:
by jarym 6y ago
Retailers will keep Product Liability Insurance and make sure their suppliers have the same for this very reason. When a claim arises there are 2 perspectives:
1. The customer only has to deal with the place they bought from.
2. Every merchant up the chain will have to go through their liability insurance to figure out who pays out.
Consumer protection laws are this way for a reason and when they're respected they work really well.
- mianos 6y agoIs this a common thing in the US? I am from Australia and the cost for managing individual product returns is a cost of business, something you take into account when pricing. There is an insurance product called 'Product Liability', but it's to insurance against large payouts, not individual returns.
- jarym 6y agoSorry, I was referring to the example that a product injures someone - as far as I know, yes, same in US, businesses have to eat the cost of returns.