Case Study on "Business Law and Manufacturer Responsibility"

Case Study 8 pages (2414 words) Sources: 5

[EXCERPT] . . . .

On the other hand, large out-of-court settlements encourage others to file suit, some often under frivolous circumstances. If company successfully defends against a failure-to-warn lawsuit, similar claims are often deterred (Mallor, etal. 377).

According to Legal Match's Law Library Presiding Editor and Lawyer, Ken LaMance, "The seller of any product has a legal duty to warn consumers of any dangers associated with the use of the product." (LaMance, 2009) However, there only exists a duty to warn of the known dangers, or the ones that should be known to the seller. "There is generally no duty to warn of dangers that should be obvious to an ordinary consumer."(LaMance, 2009). It is certainly a known fact that when something is cooked for a prolonged period of time, it can catch fire. The fact that the couple admitted that they did not follow the directions or heed the warning label on the product itself is undisputed. Since this is the case, the couple's claims against the Kellogg Company are rendered unsubstantiated and should be thrown out.

Legal Precedent

In business law, past precedent often sets the stage for how businesses and individuals deal with settling disputes of this nature. Just as in other branches of law, courts use precedent in helping to decide cases. The creation of precedent is never ending, and one of the largest dangers with this case's outcome is the fact that it could work against many manufacturers of otherwise safe products in a way that allows for further future litigation after consumers fail to heed warnings and follow clearly spelled-out instructions on products. As an interesting note, relative to this case, Kellogg's paid out $2,400 to an Ohio man in 1995 that had a similar issue with his breakfast pastries (ABC News, 2010). In this case, which helped to set a precedent for the New Jersey case, the man left the toaster unattended and after nearly 20 minutes, the product burst into flames damaging his home and property. Had Kellogg's not awarded this man a payout, the Brenda Herff case in New Jersey may not have stood on steady legal footing. But since a precedent was set, even in settling out of court, Herff's attorney felt as though she had a case.

On the opposite side of the argument however exists the idea that if individuals are not allowed to sue for damages incurred by specific products, then the incentive for keeping food and the manufacturing of related products safe remains relatively low (Buzby and Frenzen, 1999). This is certainly not the case in the Herff case, as over four decades of safe use by millions of consumers has demonstrated, but in other cases, as specific balance is struck between keeping the food industry in check relative to safety and legal matters and keeping consumers safe. The ability for a consumer to sue over product safety issues helps to put a check and balance system on the companies and corporations that are producing products. This representation of food policy is likely subject to each country's specific laws and regulations regarding tort and product safety, but in the United States, a case like the Herff's is not uncommon.

Summary

In order to prevent the legal precedent from occurring where individuals are awarded large amounts of money for their own negligence, it is important that the Kellogg Company and the Black and Decker Corporation both hold fast to their assertions that the warning labels on the side of the Pop Tart box as well as the precedent set by over 45 years of safe product usage including testing by the manufacturer itself. Otherwise, a dangerous and costly precedent would be set and courts would have myriad similar cases to deal with in the future. This is not to say that all claims of unsafe products and goods should be thrown out, as many legitimate grievances do surface, but the idea that a person, not choosing to follow the safety instructions or warning on the side of the product's packaging could claim that it's the manufacturer's fault for damages is absurd.

Whether or not cases such as the one in New Jersey help to support a massive tort reform within the United States is clear. The two historical methods for tort reform are separate, but each carries a specific legal precedent and authority. Whether or not tort reform comes from court decisions and precedents or from legislation does not affect the reality that it needs to occur in light of the Pop Tart suit in New Jersey. The Herff case is certainly a representation of consumer error or negligence, and not one of lack of product testing or safety. However, it is necessary, within a legal system, to grant the consumers the right and ability to sue a company for product safety issues. This helps to keep the tort system in check, and within a healthy legal system it helps to balance the power between consumers and the companies producing products at the lowest costs.

References

ABC News. (2010). "Kellogg Sued Over Flaming Pop Tart." Accessed via web Nov 25, 2010 at http://abcnews.go.com/Business/story?id=87887&page=1.

Buzby, Jean C. And Paul D. Frenzen. (1999). "Food safety and product liability." Food Policy. Vol. 24, No. 6. Pp. 637-651.

Institute for Legal Reform. (2008). "New Bush Administration Rules Limit Consumer Lawsuits." Chicago Sun Times, May 14, 2008.

LaMance, Ken. (2009). "Warning Label Lawsuits." Legal Match Law Library. Accessed online 25 November 2010 at http://www.legalmatch.com/law-library/article/warning-label-lawsuits.html.

Mallor, Jane… READ MORE

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