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Paralegal > Chapter 11 Products Liability > Flashcards

Chapter 11 Products Liability Flashcards

Chapter 11 Products Liability

1
Q

Chapter 11: Products Liability

I. Products Liability Theory and History

Public Policy Objectives behind Products Liability

Products liability is society’s decision that&raquo_space;&raquo_space; and&raquo_space;&raquo_space;&raquo_space; are in the best&raquo_space;&raquo_space; to bear the expenses incurred when a faulty product injures an innocent user.

The theory may be simply put: Why should the hapless victim shoulder the burden created by a defectively made product?

A

I. Products Liability Theory and History

Public Policy Objectives behind Products Liability

Products liability is society’s decision that businesses manufacturing and selling defective products are in the best economic position to bear the expenses incurred when a faulty product injures an innocent user.

The theory may be simply put: Why should the hapless victim shoulder the burden created by a defectively made product?

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2
Q

Chapter 11: Products Liability

I. Products Liability Theory and History

Historical Development of Products Liability (1 of 2)

In early nineteenth century, persons injured by defective products had to sue under&raquo_space;&raquo_space; for breach of warranty.

Only persons who had made&raquo_space; with the manufacturer or seller of a defective product could recover damages.
-Privity of contract

A

I. Products Liability Theory and History

Historical Development of Products Liability

In early nineteenth century, persons injured by defective products had to sue under&raquo_space;&raquo_space; for breach of warranty.

Only persons who had made&raquo_space; with the manufacturer or seller of a defective product could recover damages.
-Privity of contract

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3
Q

Chapter 11: Products Liability

I. Products Liability Theory and History

Historical Development of Products Liability (2 of 2)

Almost immediately, American courts began to carve out exceptions to the privity-of-contract rule.

> > v&raquo_space;., 217 N.Y. 382, 111 N.E. 1050 (1916)

  • Supreme Court declared privity of contract&raquo_space;.
  • Court applied&raquo_space; theory.
A

I. Products Liability Theory and History

Historical Development of Products Liability (2 of 2)

Almost immediately, American courts began to carve out exceptions to the privity-of-contract rule.

MacPherson v. Buick Motor Co., 217 N.Y. 382, 111 N.E. 1050 (1916)

  • Supreme Court declared privity of contract obsolete.
  • Court applied negligence theory.
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4
Q

Chapter 11: Products Liability

I. Products Liability Theory and History

Types of Warranties

Strict liability may involve three kinds of possible warranties: (1 of 3)

A

I. Products Liability Theory and History

Types of Warranties

Strict liability may involve three kinds of possible warranties:

  1. Express warranty
  2. Implied warranty of merchantability
  3. Implied warranty of fitness for a particular purpose
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5
Q

Chapter 11: Products Liability

II. Parties to Products Liability Cases

Three classes of parties are involved in products liability cases: 1 - 3

A

II. Parties to Products Liability Cases

Three classes of parties are involved in products liability cases:

  1. The product manufacturer
  2. The seller
  3. The ultimate user
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6
Q

Chapter 11: Products Liability

III. Elements (1 of 6)

A Typical Products Liability Formula

The five elements of products liability are:

  1. The defect must render the product&raquo_space;&raquo_space; to use.
  2. The seller or manufacturer must be in the&raquo_space;&raquo_space;&raquo_space;&raquo_space; such as the&raquo_space;&raquo_space;(s).
  3. The product cannot have been&raquo_space;&raquo_space; between the time it left the seller or manufacturer’s hands and the time it reached the&raquo_space;&raquo_space;.
A

III. Elements (1 of 6)

A Typical Products Liability Formula

The five elements of products liability are:

  1. The defect must render the product unreasonably dangerous to use.
  2. The seller or manufacturer must be in the business of selling products such as the flawed one(s).
  3. The product cannot have been substantially changed between the time it left the seller or manufacturer’s hands and the time it reached the ultimate user.
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7
Q

Chapter 11: Products Liability

III. Elements (2 of 6)

A Typical Products Liability Formula

The five elements of products liability are (continued):

  1. The defect must have&raquo_space;&raquo_space; the ultimate user’s injuries.
  2. The ultimate user must have used the product&raquo_space; —that is, in the way the product was&raquo_space;&raquo_space;&raquo_space;&raquo_space;.
A

A Typical Products Liability Formula

The five elements of products liability are (continued):

  1. The defect must have proximately caused the ultimate user’s injuries.
  2. The ultimate user must have used the product properly—that is, in the way the product was designed to be used.
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8
Q

Chapter 11: Products Liability

III. Elements (3 of 6)

A Typical Products Liability Formula

Some jurisdictions require additional elements:

  1. The ultimate user must have been&raquo_space; (&raquo_space;&raquo_space;&raquo_space; ).
  2. The seller or manufacturer must have been&raquo_space;&raquo_space;&raquo_space;&raquo_space; in which the product was maintained.
  3. In a few states, a&raquo_space; of the product must have occurred.
A

III. Elements (3 of 6)

A Typical Products Liability Formula

Some jurisdictions require additional elements:

  1. The ultimate user must have been foreseeable (foreseeable plaintiffs theory).
  2. The seller or manufacturer must have been responsible for the condition in which the product was maintained.
  3. In a few states, a sale of the product must have occurred.
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9
Q

Chapter 11: Products Liability

III. Elements (4 of 6)

Unreasonably Dangerous Products

The product must be unreasonably dangerous as a result of its defect.

There are four types of unreasonably dangerous defects: (1 - 4)

A

III. Elements (4 of 6)

Unreasonably Dangerous Products

The product must be unreasonably dangerous as a result of its defect.

There are four types of unreasonably dangerous defects:

  1. Fault in product design
  2. Error in product manufacture or assembly
  3. Improper product maintenance
  4. Manufacturer/seller’s failure to warn
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10
Q

Chapter 11: Products Liability

III. Elements (5 of 6)

Faulty Product Design

Courts decide faulty design in terms of three tests:
(1 -3)

A

III. Elements (5 of 6)

Faulty Product Design

Courts decide faulty design in terms of three tests:

  1. Consumer contemplation test
  2. Danger/utility test
  3. State-of-the-art discoverability test
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11
Q

Chapter 11: Products Liability

III. Elements (6 of 6)

Defective Products

Different kinds of defective products (1 - 4)

A

III. Elements (6 of 6)

Defective Products

Different kinds of defective products (1 - 4)

  1. Design defect
  2. Manufacturing defect
  3. Improper product maintenance
  4. Failure to warn by manufacturer or seller
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12
Q

Chapter 11: Products Liability

IV. Defenses (1 of 2)

Defenses to Products Liability

Some defenses to absolute liability also apply to products liability, including: 1 - 4

A

IV. Defenses (1 of 2)

Defenses to Products Liability

Some defenses to absolute liability also apply to products liability, including:

  1. Ultimate user’s misuse of a product
  2. Foreseeable misuse
  3. Removal of safety devices
  4. Assumption of risk
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13
Q

Chapter 11: Products Liability

IV. Defenses (2 of 2)

Defenses to Products Liability

Some defenses to absolute liability also apply to products liability, including (continued):

  • Ignoring a&raquo_space;&raquo_space;
  • Failure to&raquo_space;&raquo_space; a product
  • Failure to&raquo_space;&raquo_space; or&raquo_space;&raquo_space;

> > negligence is not a defense in products liability cases.

A

IV. Defenses (2 of 2)

Defenses to Products Liability

Some defenses to absolute liability also apply to products liability, including (continued):

  • Ignoring a discovered defect
  • Failure to properly maintain a product
  • Failure to follow instructions or heed warnings

Contributory negligence is not a defense in products liability cases.

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14
Q

Chapter 11: Products Liability

V. Comparison to Contract Law Warranties (1 of 2)

Express warranties

  • Products liability has its roots in&raquo_space;&raquo_space; warranties.
  • A warranty is a&raquo_space; that a product seller gives a buyer and is part of the contract between buyer and seller.
  • If the product fails to comply with the guarantee, the warranty is&raquo_space;.
A

V. Comparison to Contract Law Warranties

Express warranties

  • Products liability has its roots in contract law warranties.
  • A warranty is a guarantee that a product seller gives a buyer and is part of the contract between buyer and seller.
  • If the product fails to comply with the guarantee, the warranty is breached.
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15
Q

Chapter 11: Products Liability

V. Comparison to Contract Law Warranties

Implied warranties

  • Uniform Commercial Code (UCC) § 2-314 provides that that all goods must be of fair or average quality and fit for their ordinary purpose.
  • Uniform Commercial Code (UCC) § 2-315 provides that if the seller knows of a particular purpose for which the buyer is buying, then the goods must be fit for that purpose.
A

V. Comparison to Contract Law Warranties

Implied warranties

  • Uniform Commercial Code (UCC) § 2-314 provides that that all goods must be of fair or average quality and fit for their ordinary purpose.
  • Uniform Commercial Code (UCC) § 2-315 provides that if the seller knows of a particular purpose for which the buyer is buying, then the goods must be fit for that purpose.
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16
Q

Chapter 11: Products Liability

VI. Bad Faith

Bad faith is defined as dishonesty or other failure to deal fairly with another person.

Bad faith occurs when an insurance company denies a claim or fails to pay it in a timely fashion pursuant to the terms of the policy.

The tort of bad faith demonstrates how tort law and contract law can intersect.

A

VI. Bad Faith

Bad faith is defined as dishonesty or other failure to deal fairly with another person.

Bad faith occurs when an insurance company denies a claim or fails to pay it in a timely fashion pursuant to the terms of the policy.

The tort of bad faith demonstrates how tort law and contract law can intersect.

Paralegal (14 decks)

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