Products Liability Flashcards
Product Liability
If the product is defective and causes physical harm to person or property injured can sue for intentional torts, negligence, breach of express or implied warranties and strict liability.
Defects
Design Defect - Product is in condition intended by manufacturer but was designed in such a way that it presented an undue risk of harm in normal use.
Manufacturing Defect - Product is different from others produced, not in the condition manufacturer intended.
Warning Defect - In condition intended by manufacturer, does not present undue risk of harm in normal use but the packaging or literature fails to warn of unexpected dangers from foreseeable misuses.
Product Liability - Intentional Torts
Manufacturer sells a product they know or substantially certain is defective or dangerous, without warning, may be liable for battery.
Product Liability - Negligence
Cause of action is against manufacturer unless retailer had duty to inspect and knew of the defect. If the retailer reasonably believes there is a defect they must warn, non-action will cut manufacturer’s liability.
Product Liability - Duty
If the product creates a risk of harm, them the supplier was under a duty to all foreseeable users to inspect, discover and correct defects, which a reasonable inspection would reveal.
Product Liability - Breach
Plaintiff must establish that there was a defective product.
Manufacturer Defect - Product entered the stream of commerce due to carelessness of manufacturer. Allow for Res Ipsa Loquitur
Design Defect - If reasonable alternative design at the time of manufacturing what have eliminated or reduced danger; Risk v Utility.
Warning Defect - Did not give adequate warning of the dangers not apparent to ordinary users.
Product Liability - Acutal Cause
But for the defect plaintiff would not have been injured.
Product Liability - Proximate Cause
Retailer owes no duty to inspect or test products unless they have reason to know product to be dangerous then duty to inspect and test or at least warn. Manufacturer liability only cut off if retailer knew of danger.
Damages
Pure economic loss not sufficient. Limited to personal injury and property damage caused by product.
Punitive damages allowed if defendant’s conduct was reckless.
Defenses
Contributory Negligence, Comparative Negligence, Assumption of Risk.
Breach of Express Warranty
Manufacturer liable if warranty breached even if no negligence on manufacturer’s part.
If product does not comply with express warranty can recover for breach of express warranty. Can recover for damages to person or property, pure economic loss is sufficient.
Defenses - assumption of risk, misuse of product, puffery.
Breach of Implied Warranty
Merchantability - If product is not of average and fair quality
Fitness for Particular Use - If seller knows of buyers intended use.
Causation and Damages is same as negligence.
Defenses - Assumption of risk, comparative negligence, disclaimers, unreasonable misuse.
Product Liability - Strict Liability
Courts have held a manufacturer strictly liable to all consumer users for injuries from a defective product if placed in the stream of commerce.
Majority - To be defective must be unreasonable danger in normal use, not contemplated by user and foreseeable by manufacaturer. Liable eve if not negligent.
Design Defect - Consumer expectation test, meet expectation of consumer.
CA Rule - Only requires defective product cause harm in normal use. Design defect shifts burden to manufacturer to show risk v utility.
Consumer altering product will cut liability.
Liablity extended to bystanders.
Causation same as negligence.
Damages for injury to person or property, minority allows for pure economic loss.
Defenses Assumption of Risk , Unreasonable Misuses. CA allows comparative negligence.
Retailer strictly liable will get indemnity from the manufacturer.
