December 10, 2009

Federal FDA Food Safety System Still in the Works

After an unfortunate sequence of fatal food-borne illness outbreaks involving various food products ranging from peanuts to cookie dough to spinach, a Senate bill, the Food Safety Modernization Act, has recently been approved. However, according to nj.com, even though the bill to refurbish the FDA’s food safety system was unanimously accepted, it may not receive a floor vote until 2010. This may be partly due to the issue of funding for the food safety reform, which would drastically improve and increase Food and Drug Administration (FDA) regulatory powers.

The chairman of the Health, Education, Labor and Pensions Committee says the new FDA program may cost almost $4 billion over a period of five years. Considering that the FDA safeguards approximately 80% of the U.S. food supply, which includes imports from over 200 countries, there is no doubt that this bill will greatly help their efforts and is worth the cost.

The reformed safety program would allow the FDA the ability to order a food recall rather than force them to wait for a producer to respond to a recall request. The Senate Bill will also enforce more regulated inspections, especially for high-risk facilities. If passed in 2010, this will be the first major food safety reform since the Great Depression.

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July 14, 2009

GM and Chrysler Bankruptcies Affect Auto Product Liability Lawsuits

Auto accident victims who claim they have been injured as a result of auto product defects in New Jersey and across the nation from Chrysler and General Motors vehicles are being left high and dry because of the auto makers' bankruptcy filings. According to this news report, consumers and consumer advocates are outraged that auto makers, that are being financed by tax payers, are throwing "consumer safety protections out the window."

The bankruptcy of Chrysler and GM has led to new complications, particularly with regard to product liability lawsuits. According to several consumer advocates, the car companies will back up their warranties for auto parts, but will not take responsibility for personal injuries caused by defective auto parts. So, for example, if your brakes are bad, they'll fix them. But if you crash and get seriously injured because of defective brakes, then your auto maker (Chrysler or GM) won't be held liable for that.

Auto product defects are more common than we know or hear about every day. Thousands of auto accidents occur nationwide and in New Jersey because of defective auto products such as tires, airbags, seatbelts, seatbacks, engines and steering. Defective design of a vehicle can also cause catastrophic injuries or deaths in an auto accident.

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August 6, 2008

Products Liability and Warranty Protected With Well Written Disclaimer

If your company sells commercial goods to other businesses for resale, fabrication, or use in other products, you should make certain that your warranty disclaimers are well written, properly communicated, and otherwise enforceable. One of the most important disclaimers you should consider is a limitation of consequential damages.

When drafting warranty disclaimers, businesses must strike a balance. On the one hand, you want to protect yourself themselves from possible New Jersey products liability flowing from the product sold. On the other hand, you want to assure potential customers that you stand behind your product. An attorney who is familiar with your business is essential to drafting effective and enforceable warranty and liability disclaimers.

While the number of ways to limit potential liability is virtually infinite, probably the most important protection is to limit “consequential damages.” In plain English, the concept of consequential damages is as follows. Typically, a business claiming a breach of contract can recover the total contract price, or a fraction thereof, depending on the circumstances. For example, Buyer agrees to pay $100 for Seller’s product. After paying for it, the product does not work. If Seller cannot or will not replace or repair the product, Buyer would be entitled to $100 in direct damages for the breach.

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