Chapter 7

Question 1

Explain products liability

Answer 1

-Manufactures of goods, wholesalers, jobbers, repairs, installers, and retailers are part of the group that can be held liable for injuries caused by the products they manufacture
-The ladder of supply shows how to defective product that’s from the manufacturer to eventually users
-Any entity on the ladder might be held liable for damages resulting from a Claim
-The role of each party provides an opportunity for something to go wrong

Question 2

Define privity of contract

Answer 2

Relationship that exist between two parties, or more by virtue of their having entered into a contract

Question 3

Define burden of proof

Answer 3

The standard, by which a claim must be proven to prevail. The burden of proof is typically borne by one party or another

Question 4

Explain the tort theory

Answer 4

-Any party injured by a defective product can sue the manufacture for such injuries
-Courts may look to a manufactures peers in the industry is determine what project standards could be considered reasonable
-If the manufacturer sends a recall notice to its customers, it serves as proof that the product is defective
-Mass merchandising brings the potential for large numbers of claims

Question 5

Explain the contract theory

Answer 5

-The legal doctrine is establish between the buyer and seller limiting the enforcement of the contracts obligations between them
-Under provincial sale of goods legislation enacted to protect consumers, the buyer of goods is entitled to a warranty of fitness from the seller and that’s the following criteria applies: Be reasonable fit for their intended use and be of merchantable quality

Question 6

Explain dangerous products, and provide a case illustrating

Answer 6

-This established what warnings and labels must be present on the product-the degree of warning depends on the degree of danger present
-If the product is inherently dangerous, all entities must provide adequate warning of such dangerous to the consumer -manufacturer-agent-distributor-wholesaler-retailer-purchaser-consumer/user

Lambert versus Lastoplex

Question 7

Explain product defects and a case illustrating

Answer 7

-Manufactures must warn consumers
-There is an onus to warn customers when a defect is discovered
-Sistership -term accepted in the industry to identify the project recall policy exclusion. When a defect is discovered, all products must be recalled to fix the defect

Rivtow marine ltd vs Washington iron works

Question 8

What are defences for product liability?

Answer 8

Denial of negligence (used in all defences)
Abnormal use
Contributory negligence
Volenti non fit injuria-voluntary assumption of risk