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The myths surrounding the risks of product liability claims in the United States are of such a magnitude that foreign companies often refrain from doing business in the United States. These risks are, in large part, greatly exaggerated. Nonetheless, the potential exists that companies entering the U.S. market may be met with a product liability claim. In that instance, a company may face exposure for compensatory damages, and if the conduct giving rise to the injury is sufficiently egregious, punitive damages. Perhaps the least recognized but the most common financial exposure arises from the defense costs incurred in defending against the suit.
Therefore, it is of great importance to structure the business setup, the product instructions and warnings and the contracts related to the sale or distribution of the products so that the risk of being met with a product liability claim is minimized. We provide advice on all aspects of U.S. Product Liability Law.