A CONCEPTUAL PERSPECTIVE REGARDING PRODUCT LIABILITY

Abstract

This study analyses a current and highly important problem because we are in front of an unrecorded growth of the production volume in parallel with its diversification. Due to the fact that the introduction in production of the new products is preceded by the subsequent execution of some manually manufactured prototypes, the products are manufactured afterwards on an industrial scale. Under these circumstances there is the possibility of small errors which affect the consumer’s behaviour towards the new products. That is why, in auditing the focus is on the careful supervision of the opinions of the consumers and especially of the shortcomings of some products indicated by consumers in order to remove these from the manufacturing line. Under these circumstances, a very tight connection is required between the producers and the consumers, and a special liability of the producers towards those products. At the same time this is also a worldwide concern for the regulation of the products responsibility which has already been adopted by some large manufacturing countries. The recent example of USA was followed by the European legislation. That is why American organisations which export to Europe have to be warned because the law of product liability has been adopted in many European countries. The insurance companies are usually paying the initial losses for the cases of product liability. The manufacturer of a product has to protect itself from the risk of being brought to trial or at least to reduce the risk to a level where he could afford a reasonable profit or a continuous growth. In order to meet this objective, we need a product liability prevention program. This study analyses the product liability prevention program and presents some of the essential common elements for such a program. Therefore, one can argue that in order to have an effective product liability prevention program, some operations are required as for example: organisation, education, new revision of the products, initial revision of the products, periodical control of production, warranties control, warning of the contracts, complaints and claims, revocation plan, subrogation, risk criteria, standards, services control, reparation, etc. All these elements are described according to their own characteristics, as well as to the specific situation from the USA economy. There have also been outlined some characteristics of these elements which could allow for a product liability prevention program in other countries. That is why these elements have an important role in the economy of this material and underline once again the theoretical and practical importance of the studied problem.logistics, consumer’s behaviour, product liability prevention program, risk criteria, standards