Tort Class Products Liability Flashcards
Products Liability
the manufacturer or seller of a product is absolutely liable for any injuries caused by a defect in the product
Theory and History of Products Liability
early 19th century held that persons injured by defective products had to sue under contract law because they felt the appropriate cause of action was “breach of contract” or “breach of warranty”
Warranty
a guarantee that a product or service meets certain quality standards
Privity of Contract and Its exception
- a contractual relationship; exists when parties are directly engaged in an agreement
- privity contract is unnecessary if the defective product is imminently dangerous
imminent danger exception to the Privity of contract rule
- mislabeled poison
- spoiled food
- explosive
- improperly assembled scaffolding
- exploding coffee urn
- automobile wheels
3 parties involved in Products Liability
- product manufacturer
- the seller
- the ultimate user
Product Manufacturer
makes the defective product that gives rise to the entire products liability lawsuit
Seller
includes anyone who is in the business of selling goods
- wholesalers
- Retailers
Ultimate User
the person who eventually used the product that caused an injury; not necessarily always the Purchaser
5 elements of Product Liability (and 6-8)
- the defect must render the product unreasonably dangerous to use
- the seller or manufacturer must be in the business of selling products such as the flawed one
- the product cannot have been substantially changed between the time it left the seller or manufacturer’s hands and the time it reached the ultimate user
- the defect must have proximatly caused the ultimate user’s injuries
- the ultimate user must have used the product properly that is, in a way that the product was designed to be used
- the ultimate user must have been foreseeable
- the seller or manufacture must have been responsible for the condition in which the product was maintained
- a sale of the product must have occured
Unreasonably dangerous Products (4 types)
- fault in product design
- error in product manufacturer or assembly
- improper product maintenance
- manufacture/seller’s failure to warn
Consumer contemplation test
the defect becomes unreasonably hazardous b/c the “reasonable person” would not be expected to anticipate the danger
Danger/Utility test
a product is unreasonably hazardous if the danger created by its design outweighs the benefits derived from its use
State of the art discoverability test
if the manufactures could have discovered hazards created by the defective product designs, using current state of the art technologies, then failure to do so makes a design flawed product unreasonably dangerous
Assembly Defect
safely designed products may become unreasonably dangerous as a result of improper assembly or manufacture
Maintenance Defect
sellers occasionally fail to maintain merchandise properly, when a buyer purchases the product, it might not function correctly
Failure to Warn
manufactures and sellers have an obligation to warn the ultimate users about inherent product dangers
- if the user is warned, then the user knows the risks
- the warning must be in an obvious and noticeable place
Defenses to Products liability
- ultimate users misuse of product (using a defective product irresponsibly)
- removal of safety devices (product was misused or altered)
- assumption of the risk
Assumption of the risk defense for Products liability (3 factors)
- by discovering the defect but disregarding it and using the product anyways
- by failing to properly maintain the product
- by failing to follow instructions or read warnings for safe prodcut use
Warranty
a guarantee that a product seller gives a buyer; states that the product will perform to certain standards or will not break down over a period of time (part of contract)
