BUS 201 - Chapter 7

what is design defect?

such cases focus on the determination of whether an injury to users could have been prevented by designing the product differently.

what is caveat emptor?

"let the buyer beware" "requires that the buyer examine, judge, and test [the product] for himself"

Elements of Strict Liability or Product Defect Law

1. the product was defective 2. the defect created an unreasonable dangerous product. the manufacturer failed to warn the consumer of risks of use or of known hazards in certain uses of the product 3. the product had a design defect in it that could have been avoided 4. the product resulted in latent injuries that may not become known for years

what is a warranty?

a warranty is a manufacturer's assurance that a product will meet certain quality and performance standers.

what is intentional interference with contract relations?

aka interference with business relations or interference

what are unknown hazards?

dangers that were not known or not fully appreciated at the time the product was manufactured.

what's the more serious charge of fraud?

intentional misrepresentation

what is fraud?

is a broad concept and may be held to be an intentional tort or to be a tort based on negligence.

what is product liability?

is a general term applied to an area of the law that is primarily tort law but also involves some contract law and statutory law. This concerns the liability that producers and sellers of goods have to those injured by their products.

what is ultra hazardous activity?

it defines such activity as one that "necessarily involves a risk of serious harm to the person, land, or chattels of another, which cannot be eliminated by the exercise of the utmost care" and "is not a matter of common usage".

what is the strict liability doctrine?

it holds manufacturers liable to consumers injured by defective products regardless of whether the manufacturer had been negligent. strict liability under contract law is based on the relationship between the injured party and the manufacturer because of the existence of a warranty.

what is the bulk-supplier doctrine?

it holds that when a supplier sells a product to an intermediary in bulk, the supplier can discharge its duty to warn the ultimate users if it provides adequate instructions to the distributor next in line, or determines that the intermediary part is adequately trained in the use of the product.

what is the interference with prospective advantage?

it is also called the interference with prospective economic advantage or interference with prospective contractual relationship. There can be a tort when a business attempts to improve its place in the market by interfering with another's attempt to gain new business by use of improper acts.

what is joint and several liability?

it may be applied where two or more defendants are found liable for damages. the plaintiff may collect the entire judgement from any one of the defendants or form any and all of the defendants in varying amounts until the judgement is paid.

what is privity of contract?

it refers to the relationship that exists between contracting parties.

what is the sophisticated user defense?

it relieves a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user knows or reasonably should know of a product's dangers".

_________ about a product may be the basis for strict liability in tort.

misrepresentation

what is an implied warranty?

when the law inserts quality standards into the relationship regardless of the actual contract terms

what is an express warranty?

when the manufacturer contractually provides performance promises to the consumer