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azotic[_4_] azotic[_4_] is offline
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Default Selling prototypes, beta-versions: Liabilities?


"Lloyd E. Sponenburgh" lloydspinsidemindspring.com wrote in message
. 3.70...
"Existential Angst" fired this volley in
:

Does any of the above change with a mom/pop corporation selling
prototypes, one-offs, etc?

Any experiences/conjectures welcome.


Yep.

My attorney (who's actually got a reputation for being good at this
stuff) told me that even with a RAFT of waivers and hold-harmless
agreements - which _might_ get you off the hook in court - you still can
never prevent someone from suing you. And that's always costly and time-
consuming.

He suggests that before you sell anything with any hazard potential at
all, that you incorporate as an LLC. Then, they can sue the LLC, but if
it's structured right, all they'll get is any insurance the LLC carries,
while your personal assets are protected unless you've been criminally
negligent in allowing something you _knew_ would cause injury to be sold
to people you knew would injure themselves with it.

Incorporating that way is only a few hundred bucks in most states, and
carries with it only a small burden for record keeping and reporting.

LLoyd


In addition if the state you live in has a homestead act, register your
home and protect it from a lawsuit.

Best Regards
Tom.