Waiver of Seller’s Liability for Negligence

When a consumer is injured in some way by a product, the manufacturer or vendor can often be held responsible for these damages. To avoid this responsibility, many companies now include a waiver of seller’s liability for negligence. This waiver states that the seller cannot be held responsible for problems caused by a product that they sell. One major problem with this type of liability waiver is that it often covers more than a consumer would expect. By signing a contract with a liability waiver, consumers are essentially agreeing not to sue a company for any type of injury that may occur in the use of the product, even if the injury is well beyond what either party anticipated.


Juan rented an inflatable castle for his son’s birthday. As part of the rental agreement, the company included a liability waiver for negligence. Juan signed the agreement with the understanding that he could not sue the rental company if someone got hurt while using the castle. While no one fell or got hurt by jumping in the castle, the plastic that the castle was made of was toxic and made several of the children very sick. Because Juan had signed the rental agreement and waived any seller’s liability for negligence, he could not sue the company for the injuries caused by the toxic plastic.

Sample – Organized Sports Facility Usage Waiver:

I FULLY UNDERSTAND THAT: (a) ________ACTIVITIES INVOLVE RISKS AND DANGERS OF SERIOUS BODILY INJURY, INCLUDING PERMANENT DISABILITY, PARALYSIS, AND DEATH (“RISKS”); (b) these Risks and dangers may be caused by my own actions or inaction’s, the actions or inaction’s of others participating in the Activity, the condition in which the Activity takes place, or THE NEGLIGENCE OF THE “RELEASEES” NAMED BELOW; (c) there may be OTHER RISK AND SOCIAL AND ECONOMIC LOSSES either not known to me or not readily foreseeable at this time; and I FULLY ACCEPT AND ASSUME ALL SUCH RISKS AND ALL RESPONSIBILITY FOR LOSSES, COSTS, AND DAMAGES I incur as a result of my participation or that of the minor in the Activity.