liability disclaimer?

[Rain Man]

All assets were jointly held to prevent any possible penetration of the INC or LLC from harming me and mine.

I'll repeat. If you personally are the negligent, "bad" actor, then all the corporations and LLCs in the world won't protect you nor your assets. They shield you from vicarious liability, not from primary liability.

But, I think the analysis wrong. Juries of peers could be found here which would not find for plaintiff in a civil lawsuit. Is that an example of "corporate forum shopping?" How capital was raised isn't what would limit the effective liability.

Juries do find for corporate defendants all the time. But the Chamber of Commerce and insurance industry don't want anyone to know that. As far as business forum shopping, that's the reason so many corporations are formed ... or re-formed ... in Delaware or oddball states that have nothing to do with the business. It's simple forum-shopping by the businesses to take advantage of benevolent state legislatures that love the big guys and hate the little guys, pure and simple.

Rain Man

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[Catavarie]

Juries do find for corporate defendants all the time. But the Chamber of Commerce and insurance industry don't want anyone to know that. As far as business forum shopping, that's the reason so many corporations are formed ... or re-formed ... in Delaware or oddball states that have nothing to do with the business. It's simple forum-shopping by the businesses to take advantage of benevolent state legislatures that love the big guys and hate the little guys, pure and simple.

Rain Man

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So what your saying is to set your corp headquarters in a militaristic third world nation and pay off the rulers to keep your assests secure from lawsuit?

[AppalachianHammock]

Whoa guys.... this has gotten way to complicated. I plan on talking to a lawyer friend, but im not trying to hide bad hammocks, I was just worried about say rope slipping off the end of a hammock, or the fabric tearing. With warnings to check the ropes and carabiners before sitting down, and a weight limit, I think I will have most of my bases covered.

[Catavarie]

Just don't forget the clause about how you're not responsible for the user's bad judgement

[kayak karl]

because of what people have done these warnings are on products:

"Do not drive with sunshield in place." -- On a cardboard sunshield that keeps the sun off the dashboard.
"Caution: This is not a safety protective device." -- On a plastic toy helmet used as a container for popcorn.
"Caution: Hot beverages are hot!" -- On a coffee cup.
"Do not use for drying pets." -- In the manual for a microwave oven.
"Do not use as ear plugs." -- On a package of silly putty.
"Caution: Remove infant before folding for storage." -- On a portable stroller.
"Do not use if you cannot see clearly to read the information in the information booklet." -- In the information booklet.

Considering what people have done, what disclaimer should be on a hammock.

"Do not hang from water pipes"

[Catavarie]

Considering what people have done, what disclaimer should be on a hammock.

"Do not hang from water pipes"

Do not hang while driving or operating heavy machinery.
Do not hang over traffic.
Do not hang on a golf course.
Do not hang from power lines.
Do not hang below high tide mark while tide is coming in.
Do not hang from transforming robots from outer space bent on galactic domination.

[GvilleDave]

Not to squash your plans - I admire anyone that wants to hang out a shingle and do their own business, but I second what others have said:

Be sure your design is original and not copied or even slightly modified from other designs. There is a well respected cottage manufacturer on here that had to successfully defend himself against a lawsuit from one of the "big" manufacturers that thought his design was copied in some minute way. That is a real risk and the cost of defending such a suit would far outweigh your potential profits unless you went on a large enough scale w/ a business plan that will generate the kind of revenue to fight off this kind of issue.

If you plan to be big enough to overcome the issue above then there is no reason not to start off by finding a reputable business attorney to help you form the LLC or Type S Corp. Small investment to start things right. This will give you some of the basic protections etc... Also you will need to get advise from a tax stand point, sales tax, business licence, self employment taxes, on and on and on ( you may be surprised but the government is not very small business friendly....)

To protect you from lawsuits and liability stemming from people using your hammocks and getting injured (real and invented) (product failure & user failure) you will need to find and purchase general liability insurance and an umbrella policy. My guess is this will cost a couple hundred bucks a month for sufficient covereage. Find a good reputable local insurance agent and review your business plan with them and get an better idea of a real cost for this. Unfortunately, we live in what I call the "United States of the Offended" where so many of our citizens want to blame someone else for their own bad choices and the cash in...

So if you think your product is good enough to catch the average hammock buyers eye and your cost structure is low enough to sell in the market and still make a profit even after the legal, insurance, and tax overhead costs mentioned I say jump in there and show us what you have to offer! I applaud the american spirit that says I want to be my own boss.

[Rain Man]

So what your saying is to set your corp headquarters in a militaristic third world nation and pay off the rulers to keep your assests secure from lawsuit?

Don't have to go that far. You can do the same in Delaware or Wyoming or several US states. Forum shopping is alive and well and the Chamber of Commerce has already done that inside the US.

Now, I really am out the door to hang in my dangerous hammock for the week! LOL

Rain Man

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