Strict Products Liability Flashcards
Strict Products Liability - General Rule Statement
Invoked when a defective product, for which an appropriate defendant is responsible, injures an appropriate plaintiff.
Strict Products Liability - 8 General Elements
Proper plaintiff, proper defendant, proper context, defect, cause in fact, proximate cause, damages, and defenses.
Proper plaintiff
Generally all users of a defective product. Non-users: modern trend allows recovery where injury to non-user was reasonably foreseeable.
Proper defendant
Commercial suppliers (including rebuilders, reconditioners, retailers, manufacturers) at all levels of the distribution chain. Occasional sellers and suppliers of services cannot be strictly liable (but may be negligent).
Proper defendant - special rules for component parts
Assemblers and manufacturers of components are liable for their defects. Manufacturers are not liable where an assembler put the component to use in a way that it was not intended UNLESS that manufacturer knew or should’ve known.
Proper defendant - retailers
Retailers are subject to SL involving new products sold. JDX split exists with regard to used goods.
Proper defendant - commercial lessors
Commercial lessors are subject to SL for defective new and used goods leased.
Proper defendant - builders/sellers of new residences
Sellers of mass-marketed new homes can be liable. JDX split regarding home builders.
Proper Context
Providers of services are not held strictly liable. Where goods and services are provided, not liable where goods were merely incidental to services. (Restaurants can be held SL. Conversely, Doctors, dentists, and blood banks generally cannot).
Defect - Standard and types
Almost all jdx impose SL where a product is in a defective condition that is unreasonably dangerous. There are three types of defects: manufacturing defects, design defects, and absence of warning defects.
Defect - Manufacturing defect
Product is manufactured in a form other than the manufacturer intended. All JDX impose SL here to the manufacturer and everyone in the chain of distribution.
Defect - Design Defects - three tests
Product manufactured as intended but still presents a danger to persons or property. Three tests: Consumer Expectation, Danger-utility Test, Hindsight negligence test.
Consumer Expectation Test
Under CET, product is unreasonably dangerous when it is more dangerous than would be contemplated by the ordinary consumer who purchases it, with the ordinary knowledge common to the community as to its characteristics. Many JDX expand “consumer” to include a nonpurchaser user.
Danger Utility Test
Under DUT, product is defective if a jury determines that the danger it threatens outweighs its utility to society. Balances likelihood, nature, and severity of injuries against the utility of product and considers availability and cost of safer alternatives. With regard to available alternatives, look to the time that the product was put to market not present day alternatives.
Hindsight-negligence Test
Under HNT, product is defective if a reasonable person, knowing of the danger it presented, would not have placed it in the stream of commerce. Imposes constructive knowledge, whether or not D knew.
Absence of Warning - Definition
When a plaintiff shows failure to warn and where the manufacturer knew or should have known of the danger and failed to take reasonable steps to warn -
Absence of Warning - Inadequate warnings
Product may be considered defective when it is accompanied by an inadequate warning. Examples include failing to sufficiently describe danger, fails to mention danger, or warning is inconsistent with instruction. Some products are so obviously dangerous that a warning is considered unnecessary (i.e., knives).
Cause-in-fact
Injury can be attributed to defendant by showing that defect was in existence at the time it left defendant’s control and that defect was a substantial factor in bringing about injury.
Proximate Cause
Treated same as negligence action. HOWEVER, the negligent handling of the product by a third party after defendant’s control, is NOT a superseding intervening force. Defendant is relieved of SPL where the intervening force is the sole proximate cause of harm and where criminal acts occur to cause P’s injury.
Damages
Same principles as tort damages with exceptions. Majority of jdx say pure economic injuries are not recoverable (i.e., lost profits, add’l expenses, etc). Some JDX only allow recovery if defect threatened personal injury, regardless of whether PI was actually suffered.
Defenses - Three Defenses
Misuse, Contributory Negligence, and Comparative Negligence
Misuse
P uses product in a manner that is neither intended nor foreseeable. Here, the product is not defective.
Contributory Negligence
For defense to apply P must know of defect, comprehend danger, and continue use. Does not apply where continued use is a necessity (driving a defective car in remote dessert). Finally, subsequent alterations that are unforeseeable often provide a defense.
Comparative Negligence
Some jdx use this: P’s wrongful conduct that contributes will reduce his recovery (failure to discover defect is not wrongful conduct).
