Banner Sponsors

Acipenser Mar 18, 2006

I asked this on another thread, but thought I'd create a new one in case it gets buried there. I am thinking about selling a bear now and then, just for fun and very rarely. So I don't want to register a business, but I wonder about the legal aspects of selling things that look like toys. We all know that artist bears aren't child safe, but do all collectors know and respect that? Am I liable if a child breaks off a glass eye and chokes on it? Is it enough to add a tag saying that this is not child safe? Does the tag need to be sewn on (difficult with minis)? Or can it be a loose card or piece of paper? Do you all have insurance for product liability? Has anyone ever been sued? I am particularly nervous about selling to the US, because I have heard about some rather absurd law suits from there. Which country's law applies, seller's or buyer's country?

Thanks for any input on your experience or if anyone has legal knowledge.

Amanda Mar 18, 2006

Sabine in this country its acceptable to put This is a collectors item, and not a toy. It is therfore only suitable for  adults. Thats enough to cover you. I now what you mean though about 'Where's there blame, theres a claim'. I hate these companys. I would not worry too much.

Acipenser Mar 18, 2006

Thank you Amanda. Sweden is probably ok with such a text too, but there are hardly any collectors here to buy bears, so I would need to sell internationally. Do you sew a tag with that text onto your tiny bears or do you just include a loose card in the package?

Acipenser Mar 18, 2006

Thank you very much Lisa. I'm sure the eyes aren't the only thing that could cause a problem. Allergies for example if I use mohair. Oh dear, I am worried and am currently investigating the possibility of insurance. It seems though that I will have to register a company and then I will also have to pay taxes. Sweden has really strict rules for income tax, I would have to pay from the first krona I make. I can deduct costs of course, but I wonder if its all worth the trouble for an expected income of a few hundred dollars a year. I've had requests from collectors and would like to sell them a bear, but not if I may lose all I have in the process.
Does it stand in court if the buyer signs a document stating that the item is sold at buyer's risk? Like the software companies do  :twisted: What then if they give the bear away or sell it later to a third person? Oh boy, I definitely need to look into this some more.

Acipenser Mar 18, 2006

Help, don't want my bear turn into Chucky, or the hulk. 

I will check with the home crafts adviser in my local community to see what laws apply, but I guess since I'm not a company, liability may be limited. I'll add tags to be on the safe(er) side. And no, I get no subsidiaries. I have a well paid day job and don't plan on replacing it with bear making. As for Swedish tax law, there are big differences to other countries. I am German and still can't grasp the socialist ideology behind Swedish taxes.  Its so bad that Astrid Lindgren (author of Pippi Longstocking) wrote a satirical story once after having been taxed over 100% of her income.  :doh: Yes, it was a mistake by the tax office, but it took a celebrity like her to correct this. The government is always right, you know.

I would really like to 'hear' someone elses input in these matters. Did you get worried too now? :twisted: 

Acipenser Mar 18, 2006

Lisa, you should be in bed by now.    :hug:
In Sweden, anybody engaging in non-commercial small-income hobby activities such as bee-keeping and selling a few pounds of honey, keeping chicken and selling a few eggs, or selling craft/art anything, is subject to income taxes and social security fees. Up to a certain amount per year, buyers don't pay sales taxes (which otherwise are 25%). Don't know anything specific for full-time artists, but I guess they are taxed as everybody else. I'm not worried about the tax bit though as there is sufficient information avalailable from the tax office and as long as its not a real business, the paper work is limited (though more than for my full-time day job income).
I was only worried about the product liability part on which I have difficulty finding information for hobbyists. I'll make enquiries though and then I'll decide how to proceed.