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BS Ethics Ex 2 Q 3 - product and walking out of the...

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BS Ethics, BBA 4751-04D James Tilley, Section II Exam, Q 3 There are three theories that are used to determine product liability. First is the due care theory. This theory states that a company must take all reasonable efforts and precautions to prevent dangerous products from entering the market. They must test their products in every possible way to ensure it is safe to operate, consume, etc. The company is liable only when the company fails to use preventive measures and ensure their product is safe to market to consumers. My example is toy companies; they must test their toys extensively before marketing them due to the dangers of toys and small children thus having recommended age requirements for their toys. Second is the contractual theory. This is where the companies responsibility to inform the customer of the potential dangers of the product through a sales contract. We usually think of a sales contract as signing forms with several pages of fine print. A sales contract can simply be buying a
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Unformatted text preview: product and walking out of the department store. As long as a type of agreement can be proven a contract has been signed. We all have heard the warning “Use only as directed”, this is informing the consumer that the company is not responsible for any misuse of their products. My example is drug companies that advertise on television. The product is produced to cure or prevent an illness but may cause several other unwanted symptoms. Third is the strict liability theory. This theory holds the manufacturers responsible even after due care and contractual responsibility have been exhausted. It is the fact that the product in the hands of consumers can cause risks or dangers. My example of this theory is tobacco companies. Everyone knows that smoking causes lung cancer and respiratory problems with all of the surgeon generals warnings printed on the side of the pack. There have been several lawsuits from spouses of deceased smokers as if they have no clue it could cause death....
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