Product Liability
The Precession Tools Corporation’s case scenario raises issues of liability of manufacturers and suppliers of products. The law of product liability provides for Strict Product Liability which requires the claimant to prove the product’s defect and that the defendant was engaging in it sell. The product must be dangerous for use, and physical harm must be occasioned to the plaintiff (Miller, 2010).
In the case of design defects, occurs where necessary alteration could reduce the foreseeable anomaly. The product is defective when foreseeable risk could prevent by providing additional warnings. As sellers of products, all that Procession Tool needs to do is warn against the harm that may result from foreseeable misuse of its products, but they are not require to take precaution against conceivable misuse of product (Miller, 2010). As an ethical duty, the Firm should prevent more harm by taking the product of the market. However, removing the product would mean that the firm acknowledged that the product was defective hence the choice to remove it.
Sole Proprietors
The main characteristic of sole proprietorships is that they are owned and controlled by one person. They are small in size and operated by the owner. Advantages of a sole proprietorship are full ownership, and profits have received the landlord. They are easier to start and run due to the little capital need to start them. Due to their flexibility, decision making is simpler and faster, and the only taxes are the personal income tax. However, their shortcoming is that the owner bears all the liabilities. Liability is unlimited. They also lack continuity, i.e. they are extinguished by the death of the proprietor. To avoid loss of control, Rini can turn the business into a franchise which can obtain funding from regional and national organizations while at the same time Rini can maintain control over the affairs of the business (Miller, 2010).
References
Miller, C. (2010). The Legal Environment of Business: Text and Cases (8th e.d). Cengage Learning
