product liability

Question 1

product liability

Answer 1

buyers, users or bystanders can recover from injuries caused by defective products through negligence, strict liability or breach of warranty claims- controversial tort

a. significant cost for manufacturers -single engine plane industry
b. balance cost for manufacturers with need to compensate victims and improve products/prevent liability

Question 2

definition of defect

Answer 2

manufacturing defects; how the product is assembled, were they negligent putting together, hammer screw loose
design defects; how it it designed, does the design make sense? hammer new metal, when warm falls off

Question 3

tests

Answer 3

risk utility test- negligently designed if risks outweigh benefits- lighters safe, n ot perfectly but risks less than utility
consumer expectations test- design must be safe for intended and any reasonably foreseeable uses- head falls off when you mountain climb, slightly higher standard

Question 4

inadequate warnings

Answer 4

fails to have warnings that would reduce or avoid foreseeable risks such that the product is not reasonably safe- have to also prove four things of negligence

Question 5

strict liability

Answer 5

any commercial seller who sells a product which is defective and unreasonable dangerous is liable to a consumer for all personal or property damage caused by the product, regardless of the sellers fault

1. strict liability applies to anyone involved in the preparation and distribution of a defective product
2. injured bystanders as well as consumers can sue
3. some states limit damages to personal injury, not property damage
   defenses: (no contributory negligence)
4. assumption of risk
5. product misuse

Question 6

other strict liability torts

Answer 6

ultrahazardous activities: some states impose strict liability for injuries resulting from extremely dangerous activities (versus products)
examples: transporting or using explosives, keeping wild animals, storing large amounts of molasses

Question 7

dram shop statutes

Answer 7

commercial alcohol vendors are strictly liable for injuries caused by drunken patrons

Question 8

common carriers

Answer 8

are strictly liable for damage to goods they transport, although can limit liability through contract and other defenses

Question 9

damages

Answer 9

compensatory damages: to make plaintiff whole again (financially) includes:

1. past and future medical expenses
2. past and future economic loss
3. past and future pain and suffering
4. other (loss of limb, loss of consortium)

Question 10

punitive (exemplary) damages

Answer 10

to punish and deter intentional misconduct or gross negligence

1. based on company’s financial status and maliciousness of act, not plaintiffs need
2. impact more on investors than management
3. effectiveness reduced if insured