A company that is held responsible for the damage caused by its product in proportion to its percentage of industry sales is subject to

Question

Quizplus · Accepted Answer

Market share liability is a legal doctrine that holds a company responsible for the harm caused by its product according to the percentage of the market share it had at the time the product was sold. This theory is used when it is impossible to determine which specific company or product caused the harm. Therefore, the company with the largest market share is held liable for the damages, proportionate to its share. This approach is a form of relative liability and is used in cases where there is no evidence of negligence, intentional wrongdoing or strict liability.

A Company That Is Held Responsible for the Damage Caused