Strict Liability and Product Liability PRODUCT LIABILITY WARRANTY LAW

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1 Strict Liability and Product Liability PRODUCT LIABILITY The legal liability of manufacturers, sellers, and lessors of goods to consumers, users and bystanders for physical harm or injuries or property damages that are caused by the goods. WARRANTY LAW Under the Uniform Commercial Code, certain warranties can arise in a contract for sale of goods. Consumers and others can recover from any seller for losses resulting from a breach of: express warranties implied warranties. 1

2 Product Liability: Negligence A manufacturer is liable for its failure to exercise due care to any person who sustained an injury proximately caused by the manufacturer s negligence with regard to any of the following: Misrepresentation A manufacturer may also be liable for any misrepresentations (tort of fraud) made to a consumer or user of its product if the misrepresentation causes the consumer or user to suffer injury. Strict Liability Strict Liability is imposed as a matter of public policy. A manufacturer, seller, or lessor of goods will be strictly liable, regardless of intent or the exercise of reasonable care, for any personal injury or property damage to consumers, users, and by-standers caused by the goods it manufacturers, sells, or leases 2

3 Section 402A of the Restatement (Second) of Torts 1. One who sells any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm thereby caused to the ultimate user or consumer or to his property, if a. the seller is engaged in the business of selling such a product, and b. it is expected to and does reach the user or consumer without substantial change in the condition in which it is sold. Requirements of Strict Product Liability the product is defective when the manufacturer sells it, he manufacturer is normally engaged in the business of selling it; the product is unreasonably dangerous to a user or consumer because of its defective condition (not required in all states); the plaintiff suffers physical harm to self or property as a result of using or consuming product, which is proximately caused by the defective condition of the product; and the product must not have been substantially changed. Product Defect and Strict Liability Claims Ordinarily, a plaintiff must show that a product was so defective as to be unreasonably dangerous or that either: The product was dangerous beyond the expectation of an ordinary consumer A less dangerous alternative was economically feasible for the manufacturer, but the manufacturer failed to produce it. 3

4 Market-Share Liability In cases in which plaintiffs cannot prove which of many distributors of a harmful product supplied the particular product that caused the plaintiffs injuries, some courts have applied market-share liability. Inadequate Warnings At what point does the manufacturer s responsibility for consumer safety end and the consumer s responsibility for his or her own safety begin? Courts generally try to balance the policy of protecting consumers with the policy that manufacturers cannot be the absolute insurers of the safety of all products on the market. Other Applications of Strict Liability Bystanders Manufacturers and other sellers are liable for harms suffered by injured bystanders due to defective products. Suppliers of Components Suppliers of component parts are strictly liable for defective parts that, when incorporated into a product, cause injuries to users. 4

5 Defenses to Product Liability Assumption of risk - a defense in an action based on strict liability if the following elements are shown: The Plaintiff voluntarily engaged in the risk while realizing the potential danger. The Plaintiff knew and appreciated the risk created by the defect. The plaintiff s decision to undertake the known risk was unreasonable. Defenses to Product Liability Product Misuse: Defendant must show that: plaintiff was using the product in some way for which it was not designed, misuse was not reasonably foreseeable to the defendant. Comparative Negligence Liability may be distributed between plaintiff and defendant under the doctrine of comparative negligence. DEFENSES TO PRODUCT LIABILITY Commonly-Known Danger: Must show that injury resulted from a danger so commonly known by the general public (like the use of a knife) that there was no duty to warn. Knowledgeable User: If a particular danger is or should be commonly known by particular users of a product, no need to warn. 5

6 Statutes of Limitation and Repose A typical statute of limitations provides that an action must be brought within a specified period of time after the cause of action accrues. Other Defenses Lack of Required Elements A defendant can also defend against a products liability claim by showing that there is no basis for the plaintiff's claim (that the plaintiff has not met the requirements for an action in negligence or strict liability). Federal Preemption Compliance with federal safety standards may preclude liability under state product liability laws on the ground of preemption. 6