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The Worldwide Brands Home EBiz Newsletter: "Can I Be Sued Over the Products I Sell Online?"

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This Week's Radio Show News:

Air Date: Monday, March 28, 2005:

• "Yahoo Stores, the good, the bad and the ugly!" Hosts Chris Malta, Rob Cowie, and Contributing Editor Andy Jenkins will spend the first three Segments of this week's show talking about Yahoo Store, one of the biggest ECommerce platforms around. There are things you need to know whether you're thinking about using it, or are already using it. Contributing Editor Andy Jenkins is the Author of the top-ranked EBook, "Yahoo Store Profits", and you'll find he knows this subject inside and out! We'll be joined by our friend Mike Gelblicht, a very successful Yahoo Store owner.

• Product Source of the Week! You can get a one week jump on your competition in this segment! Chris and Rob will be Interviewing someone from a real, live Wholesale Supply company each and every week, a full week before the wholesale supplier is listed in our Directories! Each week, we'll talk with a Wholesale Supplier that has been fully verified to be included in our Drop Ship Source Directory or our Light Bulk Wholesale Directory, but will not be listed in the Directories until a full week after the Radio Show! We'll talk about their company and products, and tell you who they are and how to contact them.

• Listen Live Monday, March 28, at 9 AM Pacific, 12 Noon Eastern Time!

• Click Here to listen to the Archived Show after Monday March 28!

This Week's Featured Newsletter Article:

"Can I Be Sued Over the Products I Sell Online?"

by Chris Malta

This isn't a very common question, but it came up recently and is a subject worth talking about.

(NOTE: I am not an Attorney, I have no plans to become an Attorney, and any information you see in this Article is my personal opinion, and is not to be construed as legal advice of any kind. Please do not act on any legal aspect of your business based on any personal opinion of mine mentioned in this Article. You must consult an Attorney for the correct legal interpretations in your area.)

From time to time, I'll get a question from someone who wonders if they can be sued for product liability issues in relation to the products they sell online.

For example, Jane is selling Child Car Seats online, and it's possible, though unlikely, that a child might be injured by a faulty car seat she sold through her online store. Should she worry that the parents of the child might include her in a lawsuit?

Well, in my opinion, anything's possible, folks. There are some truly ridiculous lawsuits filed in this country and around the world, and you never know what someone else is going to do in a situation like this.

I'm not saying that parents filing a lawsuit over a child's injury is ridiculous. Far from it. In my opinion, the party or parties responsible for the injury should own up to that responsibility.

However, should Jane be included in that responsibility? Is she responsible for that faulty product, simply because it was sold through her store? Could she have known it was defective? I doubt it, personally. I don't recall ever hearing of a situation where an online seller sold something manufactured by someone else, and had to take the blame for a manufacturing defect. People who sue over things like that generally go after the manufacturer, not the hapless retailer who sold the product in good faith. Doesn't mean it couldn't happen, but I personally haven't heard of it happening!

Then again, if Jane were selling car seats that were factory-recalled because of the defect, and she bought them for pennies on the dollar because no one else wanted them, knowing that something was wrong with them, I'd think the story would be much different.

So generally, in my opinion, if a product you sell in your online store fails because of a manufacturing defect that you were unaware of, I don't personally believe you would be included in a lawsuit over the issue. I believe the manufacturer should be responsible.

You should, though, make sure to be aware of any recall or safety issue notices that your Supplier might post about any products you sell. If there is such a notice issued, act immediately to stop selling the product until the problem is resolved.

If you're one of the people who worries about this issue, there are two things I would do.

1. Contact an Attorney, and have him or her draft a legally correct Disclaimer or Policy that you can place on your web site or auction-style listings that provides you with as much protection as possible.

2. Contact an Attorney and Incorporate your business. As I understand it, if you are not Incorporated, and you DO get sued for any reason involving your business, your personal assets (home, car, bank accounts, etc.) can be taken from you if you lose. When you are Incorporated, that Incorporation acts to protect your personal assets from such a seizure. So, see an Attorney about Incorporating your business. (This is something that's a good idea whether you're worried about lawsuits or not; it just makes good common business sense).

Again, if you do have questions along these lines, please contact an Attorney for the correct legal interpretations. :o)

Chris Malta
Founder/CEO
Worldwide Brands, Inc.

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