Question

What are the ways in which salespeople can create product liabilities for companies?

1) By providing false information about the product
2) By not following safety regulations
3) By not disclosing potential risks or side effects
4) All of the above

Answer 1

Salespeople can create product liabilities by providing false information, not adhering to safety regulations, and not disclosing risks, with all of the above behaviors potentially leading to liabilities for the company.

Step-by-step explanation:

Salespeople can create product liabilities for companies in several ways:

1. Providing false information about the product can lead to consumer deception and liability for misinformation.
2. By not following safety regulations, they can put the consumer at risk and the company at fault for regulatory violations.
3. By not disclosing potential risks or side effects, they can cause harm to consumers, which results in legal liability for the company.
4. In summary, all of the above behaviors can create product liabilities for a company.

When a product has known defects, as in the case of an automobile with defective brakes, the manufacturer can be held liable if these defects cause harm. This liability arises from the manufacturer's prior knowledge and failure to act in preventing the sale of a dangerous product.