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Legal Environment of Business



All manufacturers and sellers seek to ensure that their products satisfy the customers’ needs and also meet the legal norms. The main responsibility of a business is to provide quality products to the customers, and also protect the market from illegal activities and sale of harmful and defective products. There are several Government Organizations instituted for controlling and protecting the market from illegal business activities like Black marketeering, adulterating and selling defective and dangerous products. These activities are illegal and are considered as offenses. All consumers purchase products for their use and they expect utility value from those products. When a consumer buys a product, he is solely liable for all problems that may arise from that product. A legal issue that may arise from this crisis in called Product Liability. The law protects the consumer from damaged or dangerous products. Usually manufactures use labels and other statutory warnings to inform the consumers about any problem associated with the products before they are bought, “Product liability refers to a manufacturer or seller being held liable for placing a defective product into the hands of a consumer.”(What is product liability? (2007) ( Normally the product liability Act requires that a product must meet the normal expectations of a buyer. Defective or dangerous products cannot meet the expectations of the buyers. In the US, product liability claims depend on the state laws and these laws vary from state to state. There is no federal product liability law, and mainly these laws are claimed depending upon negligence of the manufacturers. Product liability claims can only be entertained when the customers show the tangible defects of the product in Court. The manufacturer has a great responsibility to ensure&nbsp.quality in the production and sale of their goods.