Strict Product Liability

Question 1

SPL Defintion

Answer 1

SPL permits recovery by an injured consumer in a suit against the manufacturer as long as the consumer can prove that the manufacturer distributed into commerce a product that contained a dangerous defect

No finding of negligence or privity

Question 2

Economic Loss Doctrine DEFINTION

Answer 2

A P may not recover for purely economic loss

Purely economic loss = reduction in product’s value because it does not work for the purposes for which it was manufactured and sold
- May be a direct loss or a consequential loss

Question 3

Economic Loss Doctrine THREE APPROACHES

Answer 3

1) Bright Line Rule (Maj Rule) = recovery is always precluded when a defective product only damages itself without causing personal injury or damage to other property

2) Minority Approach = Allows recovery for economic loss despite a lack of personal injury or damage to other property, because such damage is still caused by the defendant’s conduct

3) Intermediate Approach = Allows tort recovery for damages to a defective product if the damages are the result of a sudden, calamitous event, rather than a reduction in value from a defective product that simply does not function properly

Question 4

Difference between SPL and breach of implied warranty of merchantability

Answer 4

a) SPL cause of action does not require notice; a UCC cause of action does
b) SPL damages are limited to those for physical injury; the damages in a UCC cause of action are not
c) SPL has the statute of limitations imposed by state law for tort actions; the UCC action is governed by §2-725. The time periods may differ significantly
d) SPL is not affected by disclaimers or remedy limitations; a UCC action may be so limited.
e) Privity is not an issue in SPL suits; privity may be an issue in UCC suits
f) SPL requires that the product contain a “defect,” but a UCC warranty may be breached even if the product is not defective