Product Liability under Export Import Business

 

Product Liability

 

Product Liability under Export Import BusinessProduct liability can be defined as the responsibility borne by the manufacturers, distributors and retailers for any consequential injuries/damages from the products they make or sell. If the user of the product suffers, he has the right to sue.

(A) In case of Negligence on the Part of the Manufacturer: Negligence in manufacturing makes him liable. The user has to establish negligence on the part of manufacturer in designing or making the product.

(B) Principle of Strict Liability: This is an important principle established by the U.S. Supreme Court in 1953. Even if there is no negligence on the part of the manufacturer, still, the manufacturer is responsible to the aggrieved user if the user sustains injury from a defective product.

(C) Express/Implied Warranties: In some contracts of sale, there are express or implied warranties in respect of merchantability of the product which make the manufacturer liable. Exporter must be conversant with the laws and regulations of the country to which the product is exported to ensure their compliance. In case any suit is filed, even though the exporter may plead that the foreign country does not have the jurisdiction over him and may succeed even. Still, he has to incur legal charges. Any penalty imposed on the distributor for the fault of exporter spoils the business relations and, finally, ruins the prospects of business. It is desirable for the exporter to take product liability insurance.

 

Types of Insurance Documents.

What happens if overseas buyer not paid export bills discounted.

What happens if proper tracking of goods not effected in export import business?

What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo?

What happens, if Bank not received money from buyer after discounting of export bills?

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

 

Triangular export

Triangular shipment

Types of Insurance Documents.

How to make DA mode of payment safe

How to make delay in delivery of Shipment?

How to minimize import cargo clearance time? An open logic proposal to WTO

What happens, if cargo not cleared by importer

What happens, if HAWB number marks wrongly

What happens, once Bill of Entry for Imports files?

What is ‘Combined Bill of Lading’

How to obtain a duplicate BL, if original bill of lading lost.

How to obtain GSP - Certificate of Origin?

Centralized GST registration of services permitted in India?

Retired from business ownership. Fresh GST registration in India?

GST Registration for Job workers in India

Click here to know GST rate on Goods and Services

GST Exemption list of goods and services

Find HSN number or Service tariff code for GST

GST registration guidelines

Indian GST Laws

How to export your goods?

Customs procedures for Costa Rica Export

Registration required to export from Costa Rica

Import Customs processes in Costa Rica

Import Registration and import Licence procedures in Costa Rica

How to export from Bolivia?

How to Import to Bolivia?

How to import to India from Bolivia?

What is VACIS exam in US import customs clearance

When can an exporter release bill of lading from shipping company?

When does exporter get EP copy of shipping bill after customs clearance

Procedure for Central Excise Clearance Under Claim of Rebate

 



Comments


mandip: I would like to seek your advice for payment recovery. Our company is based in Hong Kong and we have exported material to a person in Delhi against DA. Despite of constant reminders and telephone calls to the importer in Delhi, he is not paying up. The bills have been already due for almost one year.

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers