Products Liability Flashcards
What are the four theories of Products Liability?
There are 3 theories of products liability:
(1) negligence,
(2) strict liability,
(3) breach of warranty (express, implied warranties of merchantability, and fitness for a particular purpose)
What is the prima facie case for Strict Products Liability?
A prima facie case of strict products liability in tort requires the following:
(1) the defendant is a commercial supplier of a product (i.e., defendant is in the business of selling or distributing products);
(2) the defendant produces, sells or distributes a defective product (i.e., places in the stream of commerce);
(3) the defect caused the harm (actual and proximate cause); and
(4) damages. Privity is not required—users, consumers and bystanders can sue.
What is a Manufacturing Defect?
A manufacturing defect occurs where a product departs from its intended design. A plaintiff must show the product failed to perform as safely as an ordinary customer would expect (and a defendant must anticipate some reasonable misuse).
What is a Design Defect?
A design defect occurs where there is a defect common to the entire product line, which causes the products to be generically dangerous. A plaintiff must show that:
(1) the defect creates an inherently unreasonable risk; or
(2) the defendant could have made the product safer without serious impact on the product’s price or utility.
What is a Warning Defect?
A warning defect occurs where a manufacturer knows or has reason to know that the product is likely to be dangerous for the use for which it is supplied and, despite having no reason to believe users will realize the danger, fails to inform the users of the product’s dangerous condition or facts that make it dangerous. A product’s noncompliance with government safety standards establishes it was defective, but compliance is merely inconclusive evidence the product is not defective.
What is the prima facie case for Negligent Products Liability?
A prima facie case for negligent products liability requires:
(1) duty (to make or maintain products carefully);
(2) breach;
(3) actual cause;
(4) proximate cause; and
(5) damages.
What is an Express Warranty?
An express warranty is an affirmation of fact or promise concerning goods that becomes a basis of the bargain. A plaintiff must show:
(1) breach (the product did not live up to the warranty),
(2) actual and proximate cause; and
(3) damages. If the plaintiff is not in privity with the defendant, he need not have relied on the representation as long as someone did.
What is the Implied Warranty of Merchantability?
The implied warrant of merchantability is implied in every sale of goods, such that merchants who deal in goods of the kind warrant that goods sold are of fair average quality and fit for the ordinary purposes for which such goods are used, are adequately packaged or labeled, and conform to the promises or affirmations made on the container or label.
What is required to prove Breach of the Implied Warranty of Merchantability?
To prove breach of the implied warrant of merchantability, plaintiff must show:
(1) the product failed to live up to this standard, and
(2) such failure proximately caused his loss. In addition to the buyer, his family, household and guests may also sue.
What is the Implied Warranty of Fitness for a Particular Purpose?
The implied warranty of fitness for a particular purpose arises when:
(1) the seller knows or has reason to know the particular purpose for which the goods are required, and
(2) that the buyer is relying on the seller’s skill and judgment in selecting the goods.
What is required to prove Breach of the Implied Warranty of Fitness for a Particular Purpose?
To prove breach of the implied warranty of fitness for a particular purpose, plaintiff must show:
(1) the product failed to live up to this standard, and
(2) such failure proximately caused his loss. In addition to the buyer, his family, household and guests may also sue.
What are the Defenses to Breach of Warranty Claims?
Defenses include:
(1) assumption of the risk, and
(2) failure to give notice of breach (UCC).
When is a seller liable for Misrepresentation of Facts Concerning a Product?
A seller is liable for misrepresentations of facts concerning a product where:
(1) the statement was of a material fact concerning the quality or uses of goods (mere puffery is insufficient);
(2) the seller intended to induce reliance by the buyer in a particular transaction;
(3) the buyer justifiable relied (i.e., purchased the product);
(4) there is actual causation (can be shown by reliance);
(5) there is proximate causation; and
(6) the buyer suffered damages. Unlike intentional misrepresentation, misrepresentation in products liability does not require scienter.
