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Manufacturers’ indemnification of sellers for defective products

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Before products end up in consumers’ possession, the product must be invented, designed, assembled and sold. This generally involves a few different people or companies. Two main entities have the greatest part in getting the product to consumers, though.

This is the manufacturer and the seller. The manufacturer generally creates the product and its parts, and the seller sells the completed product to the consumers. Unfortunately, for the consumer, sometimes, the products they purchase are defective and can cause significant injuries to the consumer, depending on the type of defect. If the consumer is injured because of the defective product, he or she may be entitled to compensation for their injuries though.

The next question is who is responsible for compensating the victim, the manufacturer or the seller? The answer is generally the manufacturer. In most situations, the manufacturer must even indemnify the seller for any liability.

This means that if the seller incurs any costs or is required to pay any damages to the victim, the manufacturer must pay these costs. The only exception to this rule is if the damages were caused due to the sellers’ negligence or intentional misconduct or omission. An example is if the seller negligently modified or altered the product prior to selling it.

Many people are injured because of defective products. If a person is injured, they may be entitled to compensation, but it is important that the right company or individual is held responsible. These cases are fact specific though, and it is important to understand who to file a lawsuit against. Experienced attorneys understand the legal process and may be a useful resource.

Source: Tx.us, “Texas Statute Title 4 section 82.002,” accessed on April 10, 2017

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