Chapter 7 Flashcards
Products Liability and its Effects
Who may be involved in a products liability claim?
Manufacturers of goods, wholesalers, jobbers, repairers, installers, and retailers.
Why is it so difficult for a plaintiff to provide proof that the defendant was negligent in the manufacturing process?
Because a product may have become defective as it passed through some phase of preparation, handling, sales, or service. The product likely would have been handled by many. It is often difficult to prove the negligence of the manufacturer because a close examination of the process is not available to the plaintiff. The plaintiff must show that the product was in a defective state when it left the control of the manufacturer and that the defect caused the damages which the plaintiff suffered, and the defect was the result of the manufacturer’s negligence.
What does res ipsa loquitur describe and how does it affect onus of proof?
It holds that the accident could have occurred only because of the manufacturer’s negligence. This inference can be made when there is no other possible way that the product could have become defective.
The burden of proof shifts to the manufacturer to show that it was not negligent.
Privity of Contract
Refers to the relationship between the contracting parties and the boundaries it sets for those who can sue upon the terms of the contract - only the parties to a contract have the right to sue one another.
What criteria does sale of goods legislation affirm that products sold must be warranted to meet?
- Be reasonably fit for their intended use
- Be of merchantable quality
What conditions must apply to the sale to qualify for the warranty under sale of goods legislation?
- The buyer must rely on the skill and judgment of the seller to provide suitable goods
- The goods sold must fit within the seller’s scope of business
Why would the contract theory of products liability be considered inadequate?
It was not equitable in that many injured consumers would not receive compensation for their injuries even though a negligently made product caused the injury (because of privity of contract).
What is the tort theory established by the United States case of McPherson v. Buick Motor Co. (1916)?
A manufacturer owes a duty to any third party who might reasonably be affected by a product even though no contract is made between them.
Outline the case of Buckley v. Mott (1920) and the principle it reinforced.
The plaintiff was injured by powdered glass found in a chocolate ice cream bar. The court ruled that there was a duty not to sell a dangerous food product and imposed liability on the manufacturer.
In what landmark case was the tort duty of care set out for manufacturers?
Donoghue v. Stevenson - ginger beer with a snail in the bottle.
When a manufacturer breaches a statute what may it provide an injured customer?
Evidence of negligence
What must the manufacturer of inherently dangerous products provide?
Adequate warning on the article. The measure of adequacy of the warning depends upon the degree of inherent danger found in the product.
What was the outcome in Lambert v. Lastoplex Chemicals Co. (1972) and why?
The manufacturer was found liable for damages caused by fire and explosion as the labels failed to warn of the high inflammability of the product. A general warning is not adequate - the warning must specifically outline the dangers and consequences associated with the product.
What must manufacturers do when a defect in their products is discovered?
Warn their customer of such defect.
How did the term “sistership” arise in products liability?
A particular airplane was found to have a certain defect, and all planes of that model were grounded.
This term has been accepted in the industry to identify the product recall policy exclusion.
