products liability Flashcards
what are the 5 theories of products liability?
intent, negligence, strict liab, implied warranties of merch/fitness, and representation theories (express warranty, misrep)
is privity required for products liab?
no requirement of contractual privity between P and D
what happened in Thomas v. Winchester?
medicine dealer who labeled deadly poison as harmless strictly liable to all injured
where does duty in products liab derive?
duty that law imposes to avoid acts in their nature dangerous to the lives of others
what was the holding in Macpherson v. Buick?
duty of a manuf to inspect his goods to guard against injuries is independent of K - obligation arises at law (removed privity requirement)
what were the facts in the Macpherson v. Buick case?
1916 - manuf installed wooden wheel that collapsed on his Buick - they hadn’t made the wheel
what’s the rule from the Escola v. CocaCola case?
manuf incurs strict liab when an article that he placed on the market, knowing it will be used without inspection, has a defect that causes injury
what’s the implied warranty of merchantability?
goods are generally fit for their ordinary purpose
when does the implied warranty of fitness arise?
when seller knows or RTK the aprtic purpose for which goods are required, and that buyer is relying on seller’s skill or judgment to select suitable goods
how does an express warranty arise?
affirmative representation by D beyond act of distributing the product - promise becomes “basis of the bargain”
what’s the effect of disclaiming an express warranty?
unenforceable!
how can a P prove that D made a misrepresentation of fact?
D must have intended to induce reliance of the buyer by making a statement that proved to be false
how can P show inducement of reliance in a misrepresentation of fact by the D?
by showing that the misrep was a subst factor in their purchase decision making
what kind of misrepresentation counts?
misrep must be of a “material fact” concerning the quality, nature or approp use of the product
how does privity come into play for misrep of fact?
privity is generally irrelevant
what are the three defenses to misrepresentation of fact?
assumption of the risk, contrib negligence, comparative fault
what was the holding of Henningsen v. Bloomfield Motors?
an express warranty that limits manuf’s liability, and disclaims other express or implied warranties, is against public policy
what were the facts of the Henningsen v. Bloomfield Motors case?
husband bought car for his wife, wife was injured while driving because of mechanical failure, warranty said it was disclaimed in paperwork
when is a manuf strictly liable for injury caused by a defective product?
when an article he places on the market, knowing that it will be used without inspection for defects, proves to have a defect which causes injury
what are 3 policy reasons for strict product liability?
lack of privity between manuf and buyer, diffic of proving negligence against a distant manuf, manuf has better ability to spread economic risks among customers
what four things are required for a prima facie case of strict product liability?
(1) absolute duty owed by a commercial supplier, (2) production or sale of defective product, (3) actual/prox cause, (4) damages
is pure economic loss recoverable under strict product liability?
no - pure economic loss is NOT recoverable - must be damage to person or prop
define a “commercial supplier”
not a casual seller - manuf, retailer, assembler, wholesaler, includes sellers of used products that have been reconditioned or rebuilt
to which commercial suppliers in the chain does strict product liability apply?
strict liab extends to ANY commercial supplier in the chain of distribution
who can claim protection under strict product liab?
buyer, buyer’s family, guests, friends, employees, even protection for foreseeable bystanders
what’s the first step in claiming strict product liab?
P must first show that the product was defective when the product left D’s control