Business Law Ch 13

Commonly known dangers

The dangers associated with certain products (such as matches) are so commonly known that manufacturers need not warn users of those dangers

Market-share liability

Usually in all product liability claims, a plaintiff must prove that the defective product that cause their injury was the product of a specific defendant

Product liability Based on Misrepresentation

When a consumer is injured as a result of a manufacturers pr seller's fraudulent misrepresentation, the basis of liability may be the tort of fraud

Comparative negligence (fault)

A defendant may be able to limit at least some of its liability if it can show that the plaintiff's misuse of the product contributed to their injuries

Strict product liability and Public Policy Product defects Manufacturing defects

A departure from a product's design specifications that results in product's that are physically flawed, damaged, or incorrectly assembled.

Strict product liability and Public Policy Restatement of law (402A)

A guidance as to how the doctrine of strict liability should be applied to sellers of goods

Strict product liability and Public Policy Product defects Foreseeable misuse

A seller must warn those who purchase its product of the harm that can result from the foreseeable misuse of the product.

Strict product liability and Public Policy Product defects Inadequate warnings

Courts apply a "reasonableness" test to determine if the warnings adequately alert consumers to the product's risks.

Abnormally Dangerous Activities

Courts apply the doctrine of strict liability in dangerous situations because of the extreme risk of the activity

Knowledgeable user

If a particular danger (such as an electrical shock) is or should be commonly known by particular users of a product, the manufacturer need not warn the users of these dangers.

Rylands coal-mining case

In 1868, the Rylands has water run off in the Fletchers coal mine. It wasn't a law back then but the Fletcher's sued and it became the Ryland's law

Strict product liability and Public Policy Product defects Design defects

Made in conformity with the manufacturers design specifications but nevertheless results in injury to the user because the design itself was faulty.

Product liability Due care

Must be exercised in designing the product, selecting the materials, using the appropriate production process, assembling and testing the product, and placing adequate warning labels

Product misuse

Occurs when a product is used for a purpose for which it was no intended. Here, the injured party does not know that the product is dangerous for a particular use.

Other Applications of Strict Liability

Persons who keep wild animals are strictly liable for any harm inflicted by the animals

Statutes of limitations

Restrict them time within which an action may be brought

Product misuse Reasonable foreseeability

The seller must take measures to guard against it.

Strict product liability and Public Policy Product defects Obvious risks

There is no duty to warn about risks that are obvious or commonly known

Assumption of risk (exculpatory clauses)

This can sometimes be used as a defense in a product liability action but they must show that the plaintiff knew about the risk created by the product defect and the plaintiff voluntarily assumed the risk

Statutes of repose

To ensure that sellers and manufacturers are not left vulnerable to lawsuits indefinitely, many states passed these laws that place outer time limits on product liability actions.