Products Liability

Question 1

Product Liability - Scope of liaiblity

Answer 1

CONSUMERS:

• Personal injuries
• Property damages

Question 2

Product Liability - Possible Theories of Recovery (3)

Answer 2

1. N
2. Strict Products Liability (SPL)
3. Breach of Warranty

Question 3

Product Liability - Types of product defects (3)

Answer 3

1. Desing Defects
2. Manufacturing Defects
3. Failure to Warn

Question 4

Product Liability - Design Defects / what

Answer 4

• Product made accordingly to design but design is faulty
  
  • Includes structural defects.

Question 5

Torts - Product Liability - Design Defects - Gral Rule of liaiblitly

Answer 5

Gral Rule: ONLY manufacturer liable UNLESS

• reasonable retailer would have tested item before sale and discover defect

Question 6

Product Liability - Design Defects - RAD Test when public benefit

Answer 6

When public benefit in place, court must make balacne test:

• Cost of implementing Reasonable Alternative Design (RAD)

VS

• risk and potential of injury to consumers

Question 7

Product Liability - Manufacturing Defects - Type of problems

Answer 7

Product was not made/assembled according to specifications.

• Includes: assembling, packaging, handling

Question 8

Product Liability - Manufacturing Defects - Duties (2)

Answer 8

1. Duty to Inspect: by seller for obvious defect before shipping.
2. Duty to Test: special for some industries - i.e. airplanes, automobiles

Question 9

Product Liability - Failure to Warn - when, duty

Answer 9

For products that are can not be sold for intended purpose wihtout risk -i.e. prescription drug

• generates duty to warn/provide notice
  
  • special instruction when non-bovious danger
• No duty to warn when obviously danger: i.e. guns, tobacco.

Question 10

Product Liability - Failure to Warn - Standard for Warning

Answer 10

REASONABLY DESCRIPTIVE

Question 11

Product Liability - Failure to Warn - State of the Art Defense

Answer 11

When danger not known at time of manufacturing IF acting under i_ndustry standard_s

• no duty to warn of unknown dangers
• Also satisifed by compliance with govt mandatory regulation

Question 12

Product Liability - Subsequent Remedial Measures Rule

Answer 12

In gral not allowed as E to prove prior product defectiveness (N liability)

Question 13

Torts - Product Liability - Negligence - Legal Duty / what, by who, to who

Answer 13

• Duty of reasonable care
• To: All Ps wihtin danger zone as in stream of commerce
• From: Everyone in chain of commerce - manufacturer, wholesaler, retailer.
  
  • HOWEVER: reatiiler usually w/out duty to inspect, and N ffrom manufacturer not usually imputed to retailer

Question 14

Torts - Product Liability - Negligence - Breach of Duty / proof

Answer 14

Similar normal N:

• By direct E OR
• Res Ipsa Loquitur

Question 15

Torts - Product Liability - Negligence - Causation

Answer 15

Same as normal N:

• Both proximate and but for required
• Superseeding causes rarely break chain of causality

Question 16

Torts - Product Liability - Negligence - Damages (2)

Answer 16

1. Personal Injury
2. Property Dx

• economic loss not causes by N rarely recoverable- i.e. laid off workers no action if prodcution line failed because of defective machine

Question 17

Torts - Product Liability - Negligence - Defenses (3)

Answer 17

1. Contributory N (all or nothing)
2. Comparative Fault (proportional apportionment)
3. Assumption of risk

Question 18

Torts - Strict Products Liaiblity / Elements

Answer 18

1. Only for products/goods (no real estate or services)
2. Sold by merchant D (not casual sellers)
3. Prodcut must have defective condition AND be unreasonably dangerous
4. Without substantial change - downstrm alteration as superseading cause or defense for manufacturer if unforeseable
5. Degree of care irrelevant
6. Privity abolished

Question 19

Torts - Strict Products Liability - Defective condition AND be unreasonably dangerous Requirement - content, use, obvious dangers

Answer 19

• Includes: manufacturing defect, desing error, failure to reasonably warn
• When ORDINARY USAGE by consumer
• NO SL if gral knowledge of danger

Question 20

Torts - Strict Products Liaiblity- “Privity Abolished” - who has standing

Answer 20

• For ALL P ‘s in zone of danger - as foreseable victims
• Abolishment of:
• vertical: retailer can go against manufacturer
• horizontal: non-purchasers against sellers

Question 21

Torts - Strict Products Liaiblity- Defenses (5) SCAAM

Answer 21

1. State of the Art: industry standards + no knowledge of danger at time of production
2. Comparative Fault -unless is failure to discover hidden/latent defect (no contributory N)
3. Assumption of risk: i.e. reduction of price
4. Alteration: as break in chain of causation
5. Misuse or overuse: unforeseable use or abuse not originally intended - malfunction wouldnt happened under normal usage

Question 22

Products Liability - Breach of Warranty - applicable law, advantages

Answer 22

• UCC
• Advantage:
  
  • P can recover even if D acted with reasonable care
  • Economic loss can also be recovered
  • UCC w/4 year SOL from date of purchase (not discovery)

Question 23

Products Liability - Breach of Warranty - Types of warranties (4)

Answer 23

1. Express: reasonable and as part of bargain.
2. Implied of merchantibility: average quality/fit fro ordinary purposes and pass w/out objection in the trade
3. Implied of Fitness for Particular Purpose: when buyer relie on advice by seller - even if exceeds industry standard
4. Title and against infringement - GUT
   
   • ​​G: good title
   • U: Free from undisclosed SI, liens, encumprances, claims
   • T: Seller with full transfer rights and/or no infringement of trademark/copyright