The Product Liability Release serves as a risk management tool in U.S. business operations, particularly where products may pose inherent risks despite proper use. This document is essential when companies need to protect themselves from potential claims while maintaining compliance with consumer protection laws. It's commonly used in situations involving recreational equipment, industrial machinery, or consumer products where users should acknowledge and accept certain risks. The release must balance business protection with consumer rights under both federal and state jurisdictions.
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1. Parties: Identification of the releasing party and the released party
2. Background: Context of the release, including product details and circumstances
3. Definitions: Key terms used in the release agreement including 'Product', 'Claims', and 'Release'
4. Scope of Release: Specific claims being released and extent of the release, including present and future claims
5. Acknowledgment of Risk: Statement acknowledging understanding of potential risks and voluntary assumption of risk
6. Governing Law: Jurisdiction and applicable law governing the interpretation and enforcement of the release
7. Signature Block: Execution provisions, date, and witness requirements if applicable
1. Consideration: Details of any compensation or benefit provided in exchange for the release
2. Warranty Disclaimers: Specific warranty exclusions and limitations for commercial products
3. Indemnification: Provisions for protection against third-party claims and related losses
1. Product Description Schedule: Detailed description of the product(s) covered by the release, including specifications and serial numbers
2. Risk Disclosure Schedule: Comprehensive list of potential risks, hazards, and warnings associated with the product
3. Warranty Terms Schedule: Detailed warranty terms, conditions, and limitations if applicable to the product
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