Products Liability Flashcards
Product Liability - Scope of liaiblity
CONSUMERS:
- Personal injuries
- Property damages
Product Liability - Possible Theories of Recovery (3)
- N
- Strict Products Liability (SPL)
- Breach of Warranty
Product Liability - Types of product defects (3)
- Desing Defects
- Manufacturing Defects
- Failure to Warn
Product Liability - Design Defects / what
- Product made accordingly to design but design is faulty
- Includes structural defects.
Torts - Product Liability - Design Defects - Gral Rule of liaiblitly
Gral Rule: ONLY manufacturer liable UNLESS
- reasonable retailer would have tested item before sale and discover defect
Product Liability - Design Defects - RAD Test when public benefit
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
Product Liability - Manufacturing Defects - Type of problems
Product was not made/assembled according to specifications.
- Includes: assembling, packaging, handling
Product Liability - Manufacturing Defects - Duties (2)
- Duty to Inspect: by seller for obvious defect before shipping.
- Duty to Test: special for some industries - i.e. airplanes, automobiles
Product Liability - Failure to Warn - when, duty
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.
Product Liability - Failure to Warn - Standard for Warning
REASONABLY DESCRIPTIVE
Product Liability - Failure to Warn - State of the Art Defense
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
Product Liability - Subsequent Remedial Measures Rule
In gral not allowed as E to prove prior product defectiveness (N liability)
Torts - Product Liability - Negligence - Legal Duty / what, by who, to who
- 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
Torts - Product Liability - Negligence - Breach of Duty / proof
Similar normal N:
- By direct E OR
- Res Ipsa Loquitur
Torts - Product Liability - Negligence - Causation
Same as normal N:
- Both proximate and but for required
- Superseeding causes rarely break chain of causality
Torts - Product Liability - Negligence - Damages (2)
- Personal Injury
- 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
Torts - Product Liability - Negligence - Defenses (3)
- Contributory N (all or nothing)
- Comparative Fault (proportional apportionment)
- Assumption of risk
Torts - Strict Products Liaiblity / Elements
- Only for products/goods (no real estate or services)
- Sold by merchant D (not casual sellers)
- Prodcut must have defective condition AND be unreasonably dangerous
- Without substantial change - downstrm alteration as superseading cause or defense for manufacturer if unforeseable
- Degree of care irrelevant
- Privity abolished
Torts - Strict Products Liability - Defective condition AND be unreasonably dangerous Requirement - content, use, obvious dangers
- Includes: manufacturing defect, desing error, failure to reasonably warn
- When ORDINARY USAGE by consumer
- NO SL if gral knowledge of danger
Torts - Strict Products Liaiblity- “Privity Abolished” - who has standing
- For ALL P ‘s in zone of danger - as foreseable victims
- Abolishment of:
- vertical: retailer can go against manufacturer
- horizontal: non-purchasers against sellers
Torts - Strict Products Liaiblity- Defenses (5) SCAAM
- State of the Art: industry standards + no knowledge of danger at time of production
- Comparative Fault -unless is failure to discover hidden/latent defect (no contributory N)
- Assumption of risk: i.e. reduction of price
- Alteration: as break in chain of causation
- Misuse or overuse: unforeseable use or abuse not originally intended - malfunction wouldnt happened under normal usage
Products Liability - Breach of Warranty - applicable law, advantages
- 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)
Products Liability - Breach of Warranty - Types of warranties (4)
- Express: reasonable and as part of bargain.
- Implied of merchantibility: average quality/fit fro ordinary purposes and pass w/out objection in the trade
- Implied of Fitness for Particular Purpose: when buyer relie on advice by seller - even if exceeds industry standard
-
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