Never have prospects for the small business owner in the US looked so grim. Not only is the economic downturn making it harder for small businesses to turn profits, but overenthusiastic plaintiffs’ attorneys have made sure that even the smallest mom-and-pop store churning out children’s hoodies, is not spared a lawsuit if their products injure anyone. Whether you’re a contractor, restaurant or supermarket owner, or have your own small manufacturing unit, you may be at risk from lawsuits.
One particular area that has seen overhyped safety concerns over the past couple of years, and as a result, multi-million-dollar lawsuits, has been the children’s product industry. While nobody denies that some children’s products are defective and can injure people, the fact is that many of these injuries occur because of parental negligence. Whether you’re a distributor or importer of toys, manufacture children’s apparel or baby apparel at home, or make homemade soft toys, the stakes have simply turned too high for people in this industry to ignore.
In fact, children’s products are some of the products most often recalled by the Consumer Product Safety Commission. You don’t have to be an asset protection attorney to know that every time there’s a recall of children’s products, there is an immediate spike in the number of lawsuits filed by parents whose child was apparently injured by the recalled product.
It may seem like a harsh thing to say, but it is in fact, true. Small business owners in this industry need to take asset protection very seriously indeed. All your profits, accumulated through years of backbreaking work, promoting your business, driving up sales and spreading goodwill, will turn to nothing if your product directly or indirectly causes a child to become injured. All of your assets, including personal and business assets, could be a prime target for plaintiffs looking to make a fast buck.
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