For especially serious public safety offenses by large corporations, judges could increase punitive damages. Suppliers of raw materials to medical product manufacturers would be shielded from liability in most cases. In vetoing this bipartisan product liability reform, the President went against his own White House Conference on Small Business and members of his own party. Our nation's small businesses stand to be heavily impacted by the President's veto. Though the engines of economic growth and innovation, small businesses lack the deep pockets of corporate America.
Most small businesses are just one lawsuit away from bankruptcy.
The attorney's fees and possible punitive damages associated with a product liability case could be enough to topple them. Small business owners should be able to concentrate on job creation and business expansion instead of worrying about being sued. An even more tragic victim of the President's veto are those Americans whose lives depend on innovations in medical technology. Lifesaving medical products for afflictions both rare and common are often held back because companies can't afford the risk of bankruptcy that could result from litigation. Sometimes these manufacturers cannot even obtain the raw materials to build their products because suppliers fear litigation.