MJBizMag February 2021 - 40

Limiting Your Liability
Infused product makers should
ensure the purity of their
ingredients including cannabis
oil, chocolate, emulsion
formulas and other items.
Protect Against Product Claims
Cannabis companies can shield themselves from product-liability lawsuits
by keeping close tabs on their supply chains, avoiding bogus assertions
By Omar Sacirbey
P
roduct-liability cases are among
the most damaging lawsuits
a business can face. The
cases-often involving a defective product
that causes injury or even death-can be
time-consuming and costly. They also can
tarnish a brand's reputation.
Yet many cannabis businesses
don't take this threat as seriously as
they should, experts said. Marijuana
businesses " have not given the
forethought to the product-liability
issue that you might see in more mature
industries, " said Jesse Alderman, cochair
of the cannabis practice at Foley
Hoag, an international law firm based
in Boston.
Product-liability law is a subset of
injury law that deals with who should be
responsible for defective or dangerous
products. There is no federal productliability
law. Instead, product-liability
claims are usually based on state laws
and " brought under the theories of
negligence, strict liability or breach of
warranty, " according to FindLaw.com, a
provider of online legal information.
Legal experts generally identify three
types of product defects for which
businesses can be held liable: design,
manufacturing and marketing.
Liability for a product with defects
or dangers can potentially be tied to
any business involved in the supply
40 Marijuana Business Magazine | February 2021
chain-from designers and developers
to manufacturers, distributors, retailers
and others.
For the marijuana industry, the supply
chain can include:
* Cultivators.
* Ancillary businesses that create
inputs for or support cultivators, such
as nutrient or irrigation companies.
* Businesses that create and
manufacture infused products and
concentrates.
* Companies that produce and sell
ingredients for manufacturers of
infused products and concentrates,
such as businesses involved in
emulsions or fast-onset technology.

http://www.FindLaw.com

MJBizMag February 2021

Table of Contents for the Digital Edition of MJBizMag February 2021

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