How can I protect myself from a prolific, abusive litigant?
<p>I would like to sell items online, and came across <a href="http://www.indystar.com/story/news/2016/06/06/he-sold-40-printer-then-he-sued-indiana-30000/85219140/" rel="nofollow">this story about a person who sold a $40 printer</a> and ended up (so far) paying over $12,000 in legal fees.</p>

<p>What could I do to prevent this situation on a site like Craigslist?</p>

<p>Insurance</p>

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

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

<p>I am not a lawyer.</p>

<p>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:</p>

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

liability