Market share liability

Market share liability,

Definition of Market share liability:

  1. A legal doctrine that requires firms to assume liability on a product in proportion to their market share. For example, pharmaceutical companies producing a certain drug with side effects will be liable to the complainant even if they did not produce the actual drug causing the injury. The company will still incur liability as they are in the same market with the actual company manufacturing the product complained about.

Meaning of Market share liability & Market share liability Definition