How can I protect myself from a prolific, abusive litigant?

Question

I would like to sell items online, and came across this story about a person who sold a $40 printer and ended up (so far) paying over $12,000 in legal fees.

What could I do to prevent this situation on a site like Craigslist?

Answer 1

Insurance

Professional indemnity indemnifies you against negligent advice, public & product liability against what it says, motor vehicle ... And so on. A good insurance broker will tell you what you need for your business.

When a claim is made against you, you make a claim on your insurer and, with your input, they decide to fight or settle.

Answer 2

I am not a lawyer.

As part of the sale, require a signed contract that says all the things you want to say to protect yourself. Get a lawyer to write you one or look for examples. I won't actually write an example contract because that might look too much like unlicensed practice of law; however, you might look into the following kinds of clauses and use them (and/or others) when drafting your own:

• disclaimer of warranties of merchantability and fitness for purpose
• agreement not to hold you liable for damages resulting from defects
• limitation of liability, for instance to a token amount ($1.00) or the purchase price
• reformation and severability clauses to make sure the agreement is enforced to the maximum extent possible in any jurisdiction

Answer 3

Before to sell I would have couple witnesses that the product that I am selling in a good and working condition