What are the laws and regulations regarding product liability and warranties?
Product liability and warranties are two important concepts in Tennessee small business law. Product liability refers to the legal liability of a manufacturer and/or seller for any harm caused by a product that is defective or unreasonably dangerous. Manufacturers and sellers of products can be held liable for damages resulting from any harm caused by the product, whether the harm is physical injury, property damage, or economic losses. Warranties are promises made by the manufacturer and/or seller of a product that guarantee the product will meet certain levels of performance and quality. Warranties can be expressed, meaning that the promises are clearly outlined, or implied, meaning that certain promises are assumed to be present even if not stated. In Tennessee, the Magnuson-Moss Warranty Act of 1975 is the law that governs warranties. This law requires that anything sold with a warranty must clearly state the specific terms and conditions of the warranty. It also allows consumers to sue manufacturers and sellers for violations of warranty agreements. For product liability, Tennessee follows the principle of strict liability, which holds that manufacturers and sellers of products can be held liable for any harm caused by their products, regardless of whether they were negligent in the design, production, or sale of the product. Product sellers can also be held liable for failing to provide adequate warnings about the product’s potential risks.
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