4. Strict Products Liability Flashcards
What is Strict Products Liability?
A person engaged in selling a product can be held strictly liable if the product causes harm due to a defect and is unreasonably dangerous.
Requires five elements:
1. a proper plaintiff who is injured using the defective product, or another foreseeable plaintiff such as a bystander or a rescuer;
- a proper defendant in the chain of distribution;
- a manufacturing defect, a design defect, or a failure to warn;
- causation; and
- damages.
Is it necessary for the ultimate user to have acquired the product directly from the seller?
No.it is not necessary that the ultimate user or consumer have acquired the product directly from the seller. It is not even necessary that the consumer have purchased the product at all.
Who can be potential defendants in the chain of distribution?
- Manufacturer
- Distributor
- Retailer
- Commercial lessors
- New home developers
- Sellers of used goods
Can occasional sellers be proper defendants?
No.
Can One-time Sellers be Proper Defendants?
No. A one-time seller of a good, who is not in the retail business, is not a proper defendant for a strict products liability lawsuit.
Can a person who assembles component parts into a finished product be a proper defendant?
Yes.
Is a commercial seller of a non-defective component part strictly liable?
No, unless they substantially participated in the design integration that made the finished product defective.
Can a person who rebuilds or reconditions used goods be a proper defendant?
Yes.
Can a component manufacturer be a proper defendant?
Yes.
Are retailers and commercial lessors subject to strict liability for defects in new goods?
Yes.
Can service providers be proper defendants under strict products liability?
No.
What is a manufacturing defect?
A product manufactured in a form other than intended, which is unreasonably dangerous.
What must a plaintiff show to prove a manufacturing defect?
- Product is in a condition not intended by manufacturer
- Defect existed when leaving manufacturer’s hands
- Plaintiff suffered damage caused by manufactured defect
What is a design defect?
A product manufactured as intended but still presents a danger of injury or damage.
What is required to prove a design defect?
Plaintiff must show existence of safer alternative designs.
What are the three tests to show design defect?
- Consumer expectation test
- Danger-utility test
- Hindsight-negligence test
What is the consumer expectation test?
A product is more dangerous than contemplated by the ordinary consumer.
What is the danger-utility test?
A product is defective if its dangers outweigh its societal benefits.
What is the hindsight-negligence test?
A product is defective if a reasonable person would not have released it to the market given its known danger.
How can a plaintiff assert that a warning was inadequate?
- Fails to sufficiently describe the danger
- Fails to mention all dangers
- Is inconsistent with the instructions
Can strict liability apply to a defendant’s failure to warn?
Yes.
When are warnings unnecessary on a product?
When products are so obviously dangerous that a warning is considered unnecessary.
How can a plaintiff prove cause-in-fact by a defective product?
- Defect existed at the time it left the defendant’s control
- Handlers did not mistreat or alter the product
- Defect was a substantial factor in causing injury
How can a plaintiff prove proximate cause by a defective product?
Principles of proximate cause relevant to negligence apply.
When are damages recoverable for a defective product?
When there is personal injury or property damage other than to the product itself.
What are the five defenses to strict products liability?
- Misuse
- Alteration
- Assumption of Risk
- Contributory Negligence
- Comparative Negligence
What is misuse as a defense to strict products liability?
Plaintiff’s use of the product is neither intended nor foreseeable.
What is alteration in the context of strict products liability?
Changes in design, formula, function, or use of a product from that originally designed.
What is assumption of risk as a defense to strict products liability?
Defendant is not liable if the plaintiff knew of the defect and voluntarily exposed themselves to risk.
When does contributory negligence apply as a defense to strict products liability?
When plaintiff’s conduct rises to misuse or independent negligence.
What is the general rule for products liability based in negligence?
Plaintiff must establish a greater personal degree of fault.
Who can be proper defendants for products liability based in negligence?
- Seller of used goods
- Repairer of used goods
- Lessor of real property
- Service provider
- Franchisors
What is the standard of care for defendants in products liability?
Judged by the reasonable person standard of care.
Is a defendant’s failure to inspect and discover a product defect considered a breach of duty?
Yes, if a reasonable person would have realized the danger.
What standard is the defendant typically judged by in liability cases?
The reasonable person standard of care
What constitutes a breach of duty in products liability?
Unreasonable conduct on the part of the defendant where the plaintiff must establish a failure to exercise due care
Is a defendant’s failure to inspect and discover a product defect considered a breach of duty?
Yes, if a reasonable person would have realized that the product was dangerous in normal use
What factors are relevant in considering a defendant’s breach of duty regarding product defects?
The nature of the product, the source of the product, and the extent of information available to the defendant
Is a defendant’s failure to inspect packaged goods from a reputable manufacturer considered a breach of duty?
No, generally it is not considered a breach of duty
Is a defendant’s failure to inspect packaged goods from a questionable source considered a breach of duty?
Yes, an unreasonable failure to inspect is a breach of duty
What happens if the defendant inspects or becomes aware of a defect?
The subsequent failure to find the defect or take reasonable precautions is judged by the reasonable person standard
What type of products liability claim is based on misrepresentations by manufacturers/suppliers?
A type based on strict liability
What must a plaintiff show to recover damages for misrepresentation?
- The defendant is a seller engaged in selling products
- Misrepresentation of a material fact
- Intent to induce reliance of the buyer
- Justifiable reliance
- Actual reliance
- Proximate cause and damages
True or False: Liability for misrepresentation occurs when a representation induces reliance by the buyer.
True
