Negligence Damages

Negligence Damages

Task 1

The products liability issue has been a subject of considerable debate and examination over the last 200 years. This is not surprising, as the stakes for businesses are obvious and can even threaten the entire existence of an industry. Complicating matters further is the ability of the legal system to hold producers and all other parties involved in marketing products and services accountable in liability litigation (Bean 2008). Thus, a firm's exposure to products liability can be difficult to assess. One experienced business executive reflects on the products liability issue:

When I began my business career 30 years ago, the liability of manufacturers and distributors for injuries suffered by a product user was ... easily understood; businesses could be held responsible if their actions or conduct were negligent. During the past three decades, however, product liability law has changed dramatically, creating confusion among manufacturers and distributors as to what exactly constitutes liability ... these changes have produced a tremendous expansion in the scope of product-related injuries for which manufacturers and distributors are now held accountable.

While it could be argued that this was the intention of the enterprise liability theories guiding these changes, it is hardly surprising that business leaders have expressed some confusion and disdain for the shift in common law governing product-related injuries. In an attempt to better understand views of policymakers and business executives, Bush and Hair (1980) conducted a survey of attitudes with respect to liability and safety. They conclude that opinions of these groups differ substantially, leading to conflict and confusion regarding the direction firms should take in establishing meaningful policies to deal with product and service liability.

Likewise, the views of the legal system have been expressed. For example, (Deakin Angus Basil 2003) have provided several reviews and interpretations of products liability suits. Through these interpretations, they attempt to help interested parties understand relevant trends in common law, which in large part shape public policy in the area.

Task 2

Without question, the changes in public policy and products liability legal doctrine are intended to reduce the likelihood of a product- related injury and--if an accident does occur--assure just compensation for the injured consumer. However, while the studies cited investigate products liability opinions as voiced by business executives and the legal system, relatively few studies investigate similar opinions, attitudes, and predispositions of general consumers and product users. Not only have academic researchers neglected the consumers' perspective, but the products liability legal system appears to ignore the sentiments of the consumers it seeks to protect as well. Priest makes this point explicitly:

At the very least, the views of consumers should be useful in managerial decision-making. For example, Barksdale and Darden (1971) found that top business executives are quite concerned with consumer views and expectations in designing products and services. They report that 90 percent of executives chosen from a sample of "Fortune's Directory of the 500 Largest Corporations" strongly believe that opinions of consumers are necessary to design products which precisely meet needs and ...