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How to protect myself from liability if I'm selling a hazardous product

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Blackjack200

Lifer
May 28, 2007
15,995
1,688
126
Ebay with dummy/shell credentials would be cheapest. First goober who writes negative feedback containing the words "fire" or "destroyed" = shutdown.

Alternately get someone who has no assets to front the sales presence. Suing them is like getting blood from a stone.

Trying to incorporate with any level of insurance is going to completely obliterate your profit margin on such cheap goods.

I don't know if that's really true. People sell fireworks, don't they? If the cost of the insurance makes it impractical then I probably just won't do it.

I've heard that the importer of a product is considered the manufacturer as far as product liability is concerned. So it would probably take a tort lawyer about five seconds to figure out that I'm the one to go after.
 

surfsatwerk

Lifer
Mar 6, 2008
10,110
5
81
I don't know if that's really true. People sell fireworks, don't they? If the cost of the insurance makes it impractical then I probably just won't do it.

I've heard that the importer of a product is considered the manufacturer as far as product liability is concerned. So it would probably take a tort lawyer about five seconds to figure out that I'm the one to go after.

That's why you kill the frontman when things go south and escape to Brazil with your ill gotten gains.
 

TwiceOver

Lifer
Dec 20, 2002
13,544
44
91
Every time I see one of those things I think "That's pretty neat, wonder what it's going to burn down".
 

monkeydelmagico

Diamond Member
Nov 16, 2011
3,961
145
106
I don't know if that's really true. People sell fireworks, don't they? If the cost of the insurance makes it impractical then I probably just won't do it..

You are comparing a high volume, very high profit margin, and repeat sales items (fireworks) with yours. Does your projected sales cover the initial startup costs within approx. 6 months?

I've heard that the importer of a product is considered the manufacturer as far as product liability is concerned. So it would probably take a tort lawyer about five seconds to figure out that I'm the one to go after.

Depends on how you go about importing. Again, having a shell corp. or front person shipping thru PO boxes means the investigators that the lawyers hire get paid to chase smoke.
 

DrPizza

Administrator Elite Member Goat Whisperer
Mar 5, 2001
49,601
167
111
www.slatebrookfarm.com
Thanks, I'll look into the business liability insurance.

I'm thinking of importing those little paper hot air balloons and selling them, I'm worried someone's gonna burn their house down.

2 for $5 down at the local grocery store. That was in the little corner of the store where they discount crap they're having trouble selling. And, last I looked, it didn't look like they had sold many at that price. A quick glance online, and they're less than $1 each when purchasing 100 at a time. http://www.justartifacts.net/skylawh.html

Also, if it's helpful to know, several fire departments in my area have come out and stated that by law, the little candle in those things is considered a recreational fire (or something or other.) If you have a fire outdoors, in many states, you are required to be in attendance at the fire until it's extinguished. Once you release it and it floats away, you are no longer in attendance. So, in addition to getting your pants sued off after the first minor "catastrophe", you can bet that some fire departments are going to force the legislators to pass legislation banning these things, leaving you with a stockpile.

A sky lantern may land when the flame is still alight, making it a fire hazard.[5] In typical designs, as long as the lantern stays upright the paper will not get hot enough to ignite, but if the balloon is tilted (say, by the wind or by hitting some object), it may catch fire while still in the air. All the paper will usually burn in a few seconds, but the flame source may remain lit until it hits the ground.
After the balloon lands, the leftover thin wire frame will rust away very slowly, remaining a hazard to animals that may swallow it.[6] In 2009 British company Sky Orbs Chinese Lanterns developed lanterns with a bio-degradable fireproof rope in place of metal wire.[7] Many other European manufacturers adopted similar designs. In 2012 the same company released a patented design with fireproof base following reports of fires caused by lanterns.[8]
Sky lanterns have also been alleged to pose a danger to aircraft.[9]
On 1 July 2013 the 'largest fire ever' in the West Midlands of England, involving 100,000 tonnes of recycling material and causing an estimated six million pounds worth of damage, was started by a sky lantern which landed at a plastics recycling plant in Smethwick. Images of the lantern starting the fire were captured on CCTV.[10][11] In response to the fire, Poundland decided to stop selling sky lanterns and recalled their entire stock on 6 July 2013.[12]
Legal status

Despite their use for centuries, there has been growing concern by some about the potential danger to cause crop or building fires and even harm animals that may eat their remains. Despite the general lack of prevalence some places have banned them for these reasons.[13]
The city of Sanya in China banned sky lanterns due to their hazards toward aircraft and airspace navigation.[14]
It is illegal to launch a sky lantern in most parts of Germany; where use is not illegal, as in Herford, it is necessary to obtain advance permission from local authorities. In Austria, it is illegal to produce, sell, import, or distribute them.[15] In Argentina, Chile, and Colombia it is illegal to launch lanterns, as well as in Spain and Vietnam. In Brazil launching lanterns is an environmental crime, punishable by up to 3 years in jail since 1998.[9]
Retail sale (but not possession and use) of sky lanterns that "rely on an open flame to heat the air inside the lantern" was banned in Australia on 1 February 2011.[16]
Sky Lanterns have also been banned in Kittitas County, Washington due to fire concerns on 20 June 2013
 

Blackjack200

Lifer
May 28, 2007
15,995
1,688
126
2 for $5 down at the local grocery store. That was in the little corner of the store where they discount crap they're having trouble selling. And, last I looked, it didn't look like they had sold many at that price. A quick glance online, and they're less than $1 each when purchasing 100 at a time. http://www.justartifacts.net/skylawh.html

Also, if it's helpful to know, several fire departments in my area have come out and stated that by law, the little candle in those things is considered a recreational fire (or something or other.) If you have a fire outdoors, in many states, you are required to be in attendance at the fire until it's extinguished. Once you release it and it floats away, you are no longer in attendance. So, in addition to getting your pants sued off after the first minor "catastrophe", you can bet that some fire departments are going to force the legislators to pass legislation banning these things, leaving you with a stockpile.

I get the sense that the danger from these things is more hypothesized that realized.

I guess another thing I'd need to ask a lawyer is if I need to avoid shipping to states that might ban them, of if I can just put a "follow your local laws" type disclaimer.
 

Jeff7

Lifer
Jan 4, 2001
41,596
20
81
2 for $5 down at the local grocery store. That was in the little corner of the store where they discount crap they're having trouble selling. And, last I looked, it didn't look like they had sold many at that price. A quick glance online, and they're less than $1 each when purchasing 100 at a time. http://www.justartifacts.net/skylawh.html

Also, if it's helpful to know, several fire departments in my area have come out and stated that by law, the little candle in those things is considered a recreational fire (or something or other.) If you have a fire outdoors, in many states, you are required to be in attendance at the fire until it's extinguished. Once you release it and it floats away, you are no longer in attendance. So, in addition to getting your pants sued off after the first minor "catastrophe", you can bet that some fire departments are going to force the legislators to pass legislation banning these things, leaving you with a stockpile.
I was wondering about this as well. Setting a small burning thing afloat in an unguided wind-driven balloon made of flammable material doesn't seem like a wise thing to do, especially if you release them anywhere that there's anything like tall grass or trees or houses within several hundred yards.
 

Red Squirrel

No Lifer
May 24, 2003
70,608
13,816
126
www.anyf.ca
I may be wrong but I think if you put tons of disclaimers on it you should be safe, something ridiculous like "for use only in indoor pool buildings that have no exposed flammable surfaces such as banners" "Only to be used in jurisdictions where allowed. Contact your fire department" etc... heck, if you want to cover all your bases put "for decoration only, do not expose near candle flame". Basically saying to not use it for what it is. Kinda like how Q tips say not to put in your ear, even though that's what they're made for.
 

highland145

Lifer
Oct 12, 2009
43,973
6,338
136
I may be wrong but I think if you put tons of disclaimers on it you should be safe, something ridiculous like "for use only in indoor pool buildings that have no exposed flammable surfaces such as banners" "Only to be used in jurisdictions where allowed. Contact your fire department" etc... heck, if you want to cover all your bases put "for decoration only, do not expose near candle flame". Basically saying to not use it for what it is. Kinda like how Q tips say not to put in your ear, even though that's what they're made for.
Not sure if he has frivolous law suit codes. Should but OP needs to consult his.....lawyer.:D