If SCOTUS Shifts to the Right, is That Good or Bad for Small Businesses?
Many presume that the nomination of Judge Amy Coney Barrett, if she is confirmed by the Senate, will cause the Supreme Court of the United States to shift towards the right. Many also believe that such a shift towards conservatism will be good for business.
But is it?
It seems logical that businesses will legally benefit from rulings issued by a 6-3 conservative majority. Upon closer examination, though, it may just be that big business benefits. Small businesses — the backbone of the American economy — may end up being harmed (and left in the dust) by rulings that favor big business.
A prime example of this was argued today before SCOTUS. As noted by Main Street Alliance, an advocacy organization for small businesses, SCOTUS heard a case involving the crash of a Ford Explorer in Montana. Ford Motor was sued, with allegations that the design of the vehicle was faulty, thereby causing the driver’s death. The issue presented to the Court was one of location. Essentially, Ford claimed that it could only be sued in its home state of Michigan and not in Montana where its product crashed.
If there were a ruling in Ford’s favor, what would be the possible ramifications?
“Under the system that has prevailed for decades, a manufacturer that routinely markets its products in a certain state is subject to jurisdiction there. Large out-of-state manufacturers get all the benefits of operating within a certain jurisdiction, so they must also adhere to its laws. And states provide courts of justice for their injured citizens to prevent them from having to relocate because of a defendant’s location.
“If a court deems a victim’s home location inappropriate, they would be forced to to either pursue accountability in the jurisdiction of the corporation’s choosing, or more likely, target the local business they had been trying to support with their purchase, such as the local car dealership in this case or the local independent grocery store or boutique shop for faulty products. The added barrier to hold corporations accountable will ultimately mean small businesses are taking on the burden of corporate malfeasance.”
In other words, rather than going to Michigan to pursue Ford in this case, the plaintiff would sue the local dealership. And small businesses throughout the country could be sucked into similar legal disputes that rightfully should be between the manufacturer and consumer.
It will be interesting to see how this plays out but it is important to note that not all that glitters is necessarily gold. Small business owners need to be diligent about how best to protect themselves.
To read the full article, click here. To listen to the oral arguments before SCOTUS, click here.
