Legal Question in Civil Litigation in Texas
Private label liability
We are a manufacturer that is looking at stocking other items made by various manufacturers. These items that we are contemplating stocking would compliment our product. My question is what liability would we assume by asking these other manufacturers to ''private label'' their product with our name on it. My question evokes the argument that even though our name is on the product, we only endorse the product by putting our name on it. Therefore, it would see as though any liability issues would go back to the manufacturer of the product instead of us.
Your advice will be greatly appreciated.
2 Answers from Attorneys
Re: Private label liability
Basically you are still in the three tiers of ditribution liablity. In the event that you were sued, you would be sold as the retailer, you could be sued as the reseller if you labeled it. However the liability usually rests with the manufacturer under a theory of contribution or indemnity. Your contract with the manufacturer will be key. Please let me know if I can be of any further help.
Re: Private label liability
You have the seller's liability. If the product is defective, or dangerous, you can look to the manufacturer for contribution, but you couldn't duck the lawsuit.
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