Vending machine liability

[May_Child]

California

I recently placed a vending machine in a coffee shop, using a locator service. The vending machine dispenses candy (i.e., M&Ms, Skittles). The owner of the coffee shop gave her verbal consent, to myself and to the locating service, for me to place the machine. I have an electronic and a printed copy of the e-mail the locating service sent to me saying that they had secured the location for me to place my machine. My question:

Say someone dispenses the candy, and drops a piece on the floor, but doesn't pick it up. Later, someone steps on the candy, then slips and falls. Would I be liable for this, or would the coffee shop?

 

[I AM ALWAYS LIABLE]

California

I recently placed a vending machine in a coffee shop, using a locator service. The vending machine dispenses candy (i.e., M&Ms, Skittles). The owner of the coffee shop gave her verbal consent, to myself and to the locating service, for me to place the machine. My question:

Say someone dispenses the candy, and drops a piece on the floor, but doesn't pick it up. Later, someone steps on the candy, then slips and falls. Would I be liable for this, or would the coffee shop?

My response:

Once the candy leaves your possession, custody and control (i.e., out of the machine) and into the hands of the consumer, then the defense of any such action would be with the coffee shop, and their liability; i.e., the coffee shop allowed your machine to be there, and it's reasonable for the coffee shop to expect that some product will fall onto their floor and that someone might get injured as a result.

There are more twists and turns, however, that could still involve you and your company. Therefore, if this is a matter of obtaining liability insurance, I would strongly advise you to buy the necessary coverage. Cross-complaints against you will, nonetheless, hurt the old pocketbook.

IAAL

 

[May_Child]

Thank you. Yes, it is a matter of getting liability insurance; I'm trying to weigh the pros and cons.

 

[krispenstpeter]

If you're in business and have anything to lose, there ARE no cons.

 

[phwl]

The Pros will be that you will have some liable coverage. The Cons will be that you will have to pay for this coverage.

 

[JETX]

One thing about your post concerns me... (and it isn't the candy liability issue).
You said that you had the "owner of the coffee shop gave her verbal consent" about locating the machine there. That is NOT the way to do business.

I strongly suggest you create a valid 'approval form' and contract so that an authorized party (owner, manager, etc.) can put their consent in WRITING and use it.... starting with this location.

You also need to consider other issues, such as:
- Who is responsible for the cost of repair/replacement if your 'machine' is damaged or stolen??
- Who has physical 'control' of your machine??
- I would assume that there is some type of 'income split' with the location for the machine. What is the split and who is liable for accounting, records, etc.?
- Who is responsible for servicing (restocking, capturing cash, etc.)??