Supply Chain Liability
/ˈsəplaɪ tʃeɪn laɪəˈbɪlɪti/
Definitions
- (n.) Legal responsibility of parties within a supply chain for harm or breach caused by products, services, or processes originating at any stage of the chain.
The manufacturer faced supply chain liability for the defective components supplied by a subcontractor.
- (n.) Obligation of companies to ensure compliance with labor, environmental, and safety laws throughout their supply chains.
The company expanded its policies to address supply chain liability related to human rights violations.
Forms
- supply chain liability
Related terms
See also
Commentary
Supply chain liability often requires careful contract drafting and due diligence to allocate risk among parties involved in complex multi-tiered distribution or manufacturing relationships.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.