SPL

Question 1

SPL basics

Answer 1

• reasonableness of D’s conduct is not relevant
• can sue entire marketing chain
• pure economic loss - not recoverable under SPL

Question 2

SPL Prima Facie case

Answer 2

• Proper P (any consumer, user, or bystander)
• Proper D (anyone in marketing chain + in business of dealing goods)
• Product is defective at time it leaves D’s hands
• No misuse or alteration by P or 3rd party
• Defect: manu, design, warning
• CIF (but for/substantial)
• Prox Cause
• Damages (physical or property), CA and major - no recovery for pure economic loss, only breach of warranty
• Defenses

Question 3

Manufacturing Defects

Answer 3

• abnormality that departs from its design specifications (an outlier)

Question 4

Manufacturing Defects - OCE

Answer 4

• ordinary consumer expectations;
• if a product is more dangerous than an OCE whould expect when the product is used in the intended or foreseeable manner (CA)
• unreasonably dangerous (not CA), implied if inherently dangerous
• ordinary consumer = ordinary adult, no special knowledge needed

Question 5

Manufacturing Defects - 3rd restate

Answer 5

• product comes out in condition not intended by the manu and causes injury

Question 6

Manufacturing Defects - CA

Answer 6

• minority
• only applies to liability to food cases if “foreign,” not natural
• can only recover in negligence, not breach or SPL

Question 7

Design Defects

Answer 7

• all units are defective because it should be designed differently
• proof = circumstantial evidence, seller representations, safety reg violation

Question 8

Design Defects - OCE

Answer 8

• same as manu
• 3 problems; OC does not always know what to expect, if open and obvious danger = less likely to be found defective, and who is OC?

Question 9

Design Defects - Risk-Utility Analysis

Answer 9

• if the risk of the product as designed outweighs the utility of the product as designed
• RAD (reasonable alternative design) - known, technologically feasible and cost-effective alternative design is admissable
• 3rd requires RAD at time it is put on market
• CA - can use R/U or OCE (R/U = burden shifts to D to do R/U test)
  - OCE not available where the product is complex
• comment K- prescription drugs are exempt, extraordinary social utility

Question 10

Design Defects - R/U Analysis Factors

Answer 10

• probability of harm
• likely harm
• feasibility
• RAD
• cost/consequences of RAD
• consumer choice
• other utility considerations?

Question 11

Warning Defects

Answer 11

• fails to reasonably warn foreseeable users of product
• Failure to warn juris splits;
• majority/3rd - knew or should have known of risk (reasonable testing)
• CA - could have known or reasonably could have known (scientifically knowable, even with burden)
• minority - imputed w/knowledge (hindsight)
• heeding presumption - some juris shift burden to D to prove warning would not have changed the outcome

Question 12

Warning Defects - Learned Int. Rule

Answer 12

• drug manufacturer is not liable if given warnings to doctor who then does not warn
• doctor not liable (providing service, not product)

Question 13

Warning Defects - Post-Sale Warnings

Answer 13

• must warn foreseeable P’s

Question 14

Warning Defects - Breach of Warranty

Answer 14

• sellers provide a warranty that their goods are “merchantable” - K claim and strict liability