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.