Legal Question in Business Law in California
starting a online vitamin company in califprnia and had one simply worry if I resale a vitamin or supplement and it is misued can they go after me for anything.
2 Answers from Attorneys
If you were to resell a product that is defective or which causes injury, and for some reason the victim is unable or unwilling to sue the manufacturer or distributor, you're it. You could buy products liability insurance.
I would go a step further and say that everyone in the distribution chain has potential liability for a defective or misused product. Manufacturer, wholesaler, retailer, all of them are potentially liable to a consumer or family member. Ambulance chasers tend to name everyone in the distribution chain as defendants, and a judgment may name several or all defendants as liable, jointly and severally. The judgments usually end up being paid by deep-pockets parties (the manufacturers), but suppose the judgment is for only $50,000 and the manufacturer is in China, with no presence in the USA? The plaintiff's attorney would come after you. The answer is that liability insurance is necessary unless you have no vulnerable assets or income and don't expect any. Incorporation or an LLC may also be a part of the solution. When the product is something taken orally I think there is an additional risk (of overdose, improper use, impurity, etc.).
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