C7 Test Review (T3)

What is a manufacturing defect and when is liability imposed for injuries in such cases?

The product malfunctions while being used for its purpose. Liability is imposed when a product comes off the assembly line with a defect that makes it dangerous to any user

Strict liability under contract law for injuries caused by defective products is imposed on the basis of what theory?

Warranty theory (implied warranty, express warranty)

When is liability imposed due to a manufacturer's failure to warn?

When the manufacturer knows of a danger caused by the product's use that cannot be prevented entirely, but about which users could be warned and they choose not to

In product defect cases, what does liability based on negligence require?

That the producer used duty of care in producing the product, presenting it to the public, and revealing defects

What is strict liability in tort?

The manufacturer is held to strict liability if the plaintiff can prove product is defective, created an unreasonably dangerous condition, and caused damages

How does market share liability work?

The plaintiff may sue for injuries from a product even if they don't know where it originated (based on manufacturer's % of market at tort)

Strict liability in tort was described and defined by the American Law Institute (ALI) in what document?

Section 402A in the Restatement (Second) of Torts

In what year did the courts begin changing the legal standard from negligence to strict liability in tort?

1963

What is an unknown hazard? Are manufacturers liable for injuries due to unknown hazards?

A danger that was not known or not fully understood at the time the product was manufactured. Manufacturers can be held liable

What was the outcome in the Collins v. Eli Lilly case? Were all makers of the drug potentially liable?

Collins took the drug. It was hard to find out who manufactured the pill. The makers of the drug could all be liable.

What is meant by the term privity of contract?

Contractual relationship is required for a company to be held liable

What types of harms is the law of product liability concerned with?

Defective products, injuries to consumers, product misuse

What is the focus when cases deal with design defect?

Focuses on whether an injury to users could have been prevented by designing the product differently

What was the outcome of Baxter v. Ford Motor Co.? What was the cause of action (theory of liability) based on?

Ford made a statement which misinterpreted the windows in a car as having "triple shatterproof glass", forming an express warranty when the car didn't have that. Baxter won the case

Does negligence as a theory of liability require intent on the part of the manufacturer to produce an unsafe product?

No

Is a plaintiff required to demonstrate the element of negligence in a case based upon strict liability in tort? Is the manufacturer free of liability if it exercised reasonable care?

No, no

What were the two major holdings developed in the case of MacPherson v. Buick Motor?

Privity of contract no longer applies and the primary producer is responsible for the entire product

Are there any defenses in cases brought using strict liability in tort?

Product abuse and misuse, assumption of risk, sophisticated purchaser

What is the theory of liability if the manufacturer or seller of a product makes factual assertions about the product and it does not meet those expectations?

Warranty theory

Can businesses be sued in lawsuits based on tort law?

Yes

Can a manufacturer or seller of a product be liable for failure to warn when warnings are clearly and conspicuously displayed on the product packaging in plain English?

Yes, if there is a significant population of people speaking a different language. They need to write warnings in local language and/or use pictures to not be held liable

Was Buick liable for a defective component supplied by an outside vendor that was installed on its automobile?

Yes, they were found liable for the injury. The judge said that if you produce the product you are liable for that product.

What was the outcome in the Greenman v. Yuba Power Products case? What purpose did the court use in its reasoning to apply strict liability?

Yuba Power Products were held liable for a defect in the safety guard that allowed injury. The court used the Second Reinstatement of Torts