Laws of production in the US

For failing to adequately oversee the quality of the raw materials they employ to produce finished goods, U.S. businesses are accountable. Businesses in the United States of America leave themselves open to civil lawsuits brought in response to mishaps connected to the usage of their products, however this varies from state to state (Seaquist, 2012). Since companies are reluctant to import raw materials in big quantities from China, this strategy has resulted in business standstill. They try to prevent numerous consumer lawsuits, which is why. Loss of revenue for the businesses as a result of the inability to confidently and in large quantities import raw materials is another effect.
In an effort to make up for the losses, as they try to compensate the affected since foreign suppliers cannot be held liable for defective products. Foreign countries may also have corrupt legal systems and slow dispute resolution mechanisms thus leaving U.S companies to be liable for the damages. The loss can be demoralizing to many investors thus affecting the country’s economy (Seaquist, 2012).

American companies are liable for damages caused by poor quality goods from China, a quality assurance agreement with firms in China should be done before they begin to do business. This strategy would ensure manufacturers and retailers in America are working with companies that have high-quality control standards from China. The U.S manufacturers should also add warning labels on all final products produced using raw materials that are not tested for their quality. This would reduce any severe liabilities from the use of such goods. Implementation of the above strategies would be faced with the challenge of increase in production costs. Some of the processes like making agreements with foreign companies would require money and time. Adding warning labels on products will reduce their products’ demand.



References

Chinese Imports & Food Safety - PBS Newshour - YouTube. (n.d.). YouTube - Broadcast Yourself.

Seaquist, G. (2012). Business law for managers. San Diego, CA: Bridgepoint Education, Inc