torts 2 deck 5 products liability

Question 1

the old rule

Answer 1

Plaintiff  Atkinson  Postmaster General  Defendant Wright
No privity of contract 
No cause of action

Question 2

The Evolution to Modern Products Liability Law

Answer 2

MacPherson v. Buick Motor Co. (NY 1916), p. 674
Wheel manufacturer  Defendant manufacturer (Buick Motor Co.)  Automobile retailer  Plaintiff
Car collapsed, with Plaintiff in it.
Wheel was made of defective wood.
Plaintiff sues Buick Motor Co.
Claim: Negligence

Question 3

holding

Answer 3

“If he [the defendant manufacturer] is negligent, where danger is to be foreseen, liability will follow.”

Wheel manufacturer  Defendant manufacturer (Buick Motor Co.)  Automobile retailer 

Question 4

A Manufacturer’s Obligation

Answer 4

The obligation:
Must keep pace with the changing relationship between manufacturer and consumer
The facts:
Consumers cannot investigate for themselves
Manufacturers are advertising directly to consumers

Question 5

strict liability

Answer 5

“In my opinion [Traynor’s] it should now be recognized that
a manufacturer incurs an absolute liability when an article he has placed on the market,
knowing that it is to be used without inspection,
proves to have a defect that causes injury to human beings.”

Question 6

What standard of liability?

Answer 6

“One who sells any product in a defective condition unreasonably dangerous”
“is subject to liability for physical harm thereby caused . . .”
“The rule . . . applies although
“the seller has exercised all possible care in the preparation and sale of his product . . .”
A strict liability standard

Question 7

Restatement (Third) of Torts: Products Liability, p. 670

Answer 7

§ 1:
“One engaged in the business of selling or otherwise distributing products
who sells or distributes a defective product
is subject to liability for harm to
persons or property caused by the defect.”
Extends liability to bystanders

Question 8

Categories of Product Defects

Answer 8

§ 2
“A product is defective when, at the time of sale or distribution, it contains
a manufacturing defect,
is defective in design, or
is defective because of inadequate instructions or warnings.”
Restatement (Third

Question 9

What is economic loss?

Answer 9

Damages “for inadequate value, costs of repair and replacement of the defective product, or consequent loss of profits—
without any claim of personal injury or damage to other property.”

Question 10

Protects interests beyond disappointed expectations

Protects society’s interest in being free from harm

Answer 10

tort law

Question 11

products liability

Answer 11

A strict liability tort
Because, whether a manufacturer is negligent or not, “public policy demands that responsibility be fixed wherever it will most effectively reduce the hazards to life and health inherent in defective products that reach

Question 12

An Exception for Homeowners?

Answer 12

Buying a home is big investment
What protects a homeowner?
Statutory warranties
General warranty of habitability
Duty of sellers to disclose defects
Ability to inspect houses before purchase
Power to bargain over price and terms