Legal Question in Business Law in California

If I set up candy dispensing machines at stores near elementary, middle, and high schools (put-a-quarter-in-and-get-a-handful-of-skittles type machines), will I be liable for the following:

(1) If a kid has peanut M&M's, turns out to be allergic to peanuts, and winds up at the hospital

(2) If a kid chokes on a gumball or a jawbreaker

(3) If a kid bites into a jawbreaker and damages his teeth

Will it make any difference if the machine is located outside the store or in the store (as to whether I or the store owner supervising is liable)?

Thanks you,

Marc


Asked on 8/08/09, 6:58 pm

2 Answers from Attorneys

Nick O'Malley The Law Offices of Nick O'Malley ALC

Without doing research, I would say yes to 1, 2 and 3 as I believe the standard of care is higher for children.

As for your second question, I wouldn't attempt to answer this without research.

However, you should be aware that most attorneys would not accept cases like these unless it would be easy to prove that the child's injuries were due to food purchased from your machines. The costs of prosecuting such cases can often outweigh the likely damages.

And check your commercial insurance to make sure it would provide defense and converage for such claims if they came your way. Call your broker first for free advice. Good luck!

Read more
Answered on 8/08/09, 10:35 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

It would be up to the plaintiff (injured party) to prove to the judge or jury that you were negligent, by a preponderance of the evidence, and that your negligence caused the injury. I think labeling the peanut-containing candy as such would be absolutely necessary to avoid being found liable for that problem. As to jawbreakers, they are kind of self-labeling.

In short, there are risks in any business. The answers to handling potential liability and surviving in business include (1) insurance; (2) providing clear and visible warnings of forseeable risks to consumers; and (3) doing business as a properly set up and run corporation or LLC.

Candy-dispensing machines are a business with definite and more or less ascertainable risks. So is running a railroad, an amusement park, or an oil refinery. If the business has enough profit potential to warrant buying the insurance and taking the other precautions, go for it. With insurance. With a corporation or LLC.

Read more
Answered on 8/09/09, 12:05 am


Related Questions & Answers

More Business Law questions and answers in California