I am a business student and have a question about liability for a product.

UPDATED: Jun 12, 2017

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I am a business student and have a question about liability for a product.

Wanda sell gourmet dog treats, what kind of legal exposure does she have and how can she protect herself from lawsuits if her treats make dogs sick?

Asked on June 12, 2017 under Business Law, Virginia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If a dog is sickened or killed by someone's contaminated dog treats, he or she could be liable for the cost of the dog's medical treatment (i.e. vet bills) and/or for the economic value (basically cost) of the dog.
To protect yourself: 
1) Form an LLC and have the business conducted under the LLC: this will insulate personal assets and income (including your personal bank account[s], you car, your real estate) from most business-related liability, such as for sickened, etc. dogs. Be sure to respect the LLC structure and separation from you; e.g. keep its accounts and money separate from yours. With an LLC, only the money, assets, etc. of the LLC, not the owner's assets, should be at risk.
2) Get appropriate liability and umbrella insurance to protect the LLC and its assets. A reputable agent can guide you in what to purchase.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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