Legal Question in Business Law in California
release from liability agreement
I am a retailer who occasionaly modifies a product (for example a chair) to fit a persons requirements. At the moment that I do this modification I lose the manufactuerers liability in event of injury by the end user.
My question is-- Is there an agreement I can have my customer (the end user) sign holding my company, a corporation, harmless in the event of injury ?
Thank you for your help.
2 Answers from Attorneys
Release of liability agreements exist.
Why do you assume the manufacturer's liabilityis 'lost'? Are you doing modifications whichrender the product less safe, e.g., whittlingdown the legs?
Does the original manufacturerhave a bigger wallet than you so that they'd be themore attractive defendent in a law suit?
It's a nice precaution to inform the customerup front that s/he'll be required to sign such an agreement -- present it to them before you make your modifications, even. In fact, you couldincorporate it into a sales contract that they signto commission you to make the changes, but do have it highlighted.
That agreement is probably better at intimidating anaive consumer -- making them believe you are not liable because they've agreed to it -- than it is a real source of perfect protection for you. What if someone else who didn't sign the agreement sits on your modified stuff and it breaks? Product liability law is meant for when the manufacturer doesn't personally know the intended user.
You might be able to get some cheap liability insurance,too.
Curious -- what kinds of modifications DO you make?
Last comment ... this isn't advice! (I AM reducing myliability.) I'm not your lawyer. You really ought to consult a local attorney to be certain aboutthese matters.
You had better purchase products liability insurance.
I assume that you are looking for an agreement to protect you for all situations you may encounter. If that is the case, you had better purchase products liability insurance to protect you. Whatever agreement you have your customers sign is always open to review by a court. No one can guarantee what some unknown court will do years from now. And, since your product can be moved to another state, who knows what that other state's laws will be. Insurance will protect you from both the costs of defense and damages (injuries) caused to the limits of the coverage purchased.