Is Smith & Wesson Facing the Same Risk That Helped Bankrupt Remington?
Just as automakers aren't held liable for criminals driving cars while on a crime spree, the 2005 Protections of Lawful Commerce in Arms Act protects firearms manufacturers like Smith & Wesson Brands (NASDAQ: SWBI) and Sturm, Ruger (NYSE: RGR) from being held responsible for crimes committed with their products.
Gun control advocates, though, are exploring ways to do an end run around the law by using consumer protection laws to go after gunmakers, and the pursuit of Smith & Wesson in New Jersey may become the test case indicating whether the effort will be replicated across the country against all firearms companies.
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Source Fool.com
