1. © 2004 West Legal Studies in Business A Division of Thomson Learning 1 IV. Strict Liability IV. Strict Liability  A. Abnormally dangerous activities  B. Keeper of trespassing livestock  C. Keeper of wildlife  D. Keeper of domestic animals with know vicious propensities  E. Products liability.. IV. Strict Liability IV. Strict Liability  A. Abnormally dangerous activities  B. Keeper of trespassing livestock  C. Keeper of wildlife  D. Keeper of domestic animals with know vicious propensities  E. Products liability..

2. © 2004 West Legal Studies in Business A Division of Thomson Learning 2 Abnormally Dangerous Activities AKA Ultra Hazardous Defendant is strictly liable for an “abnormally dangerous activity” if: Defendant is strictly liable for an “abnormally dangerous activity” if:  Activity involves serious potential harm;  Activity involves high degree of risk that cannot be made safe; and  Activity is not commonly performed in the community or area.. Defendant is strictly liable for an “abnormally dangerous activity” if: Defendant is strictly liable for an “abnormally dangerous activity” if:  Activity involves serious potential harm;  Activity involves high degree of risk that cannot be made safe; and  Activity is not commonly performed in the community or area..

3. © 2004 West Legal Studies in Business A Division of Thomson Learning 3 Persons who keep wild animals are strictly liable for injuries caused by the beast. Persons who keep wild animals are strictly liable for injuries caused by the beast. Keeper of livestock is liable for their trespasses. Keeper of livestock is liable for their trespasses. Persons who keep domestic animals are liable if the owner knew or should have known that animal was dangerous.. Persons who keep domestic animals are liable if the owner knew or should have known that animal was dangerous.. Persons who keep wild animals are strictly liable for injuries caused by the beast. Persons who keep wild animals are strictly liable for injuries caused by the beast. Keeper of livestock is liable for their trespasses. Keeper of livestock is liable for their trespasses. Persons who keep domestic animals are liable if the owner knew or should have known that animal was dangerous.. Persons who keep domestic animals are liable if the owner knew or should have known that animal was dangerous..

4. © 2004 West Legal Studies in Business A Division of Thomson Learning 4 Product Liability Caveat Emptor Caveat Emptor Product Liability is not a separate tort—but is area of liability Product Liability is not a separate tort—but is area of liability Liability can be based on: Liability can be based on:  Negligence;  Misrepresentation; or  Strict Liability;  Warranty Theory (pgs. 262-266).. Caveat Emptor Caveat Emptor Product Liability is not a separate tort—but is area of liability Product Liability is not a separate tort—but is area of liability Liability can be based on: Liability can be based on:  Negligence;  Misrepresentation; or  Strict Liability;  Warranty Theory (pgs. 262-266)..

5. © 2004 West Legal Studies in Business A Division of Thomson Learning 5 Product Liability (Negligence) Negligence-based product liability is based on a manufacturer’s breach of the reasonable standard of care and failing to make a product safe.. Negligence-based product liability is based on a manufacturer’s breach of the reasonable standard of care and failing to make a product safe..

6. © 2004 West Legal Studies in Business A Division of Thomson Learning 6 Product Liability (Negligence) Manufacturer must exercise “due care” in: Manufacturer must exercise “due care” in:  Designing products;  Inspecting and Testing Products; »Manufacturing and Assembling Products and  Placing adequate warning labels.. Manufacturer must exercise “due care” in: Manufacturer must exercise “due care” in:  Designing products;  Inspecting and Testing Products; »Manufacturing and Assembling Products and  Placing adequate warning labels..

7. © 2004 West Legal Studies in Business A Division of Thomson Learning 7 Requirements for Strict Product Liability Plaintiff must show product was so “defective” it was “unreasonably dangerous”: Plaintiff must show product was so “defective” it was “unreasonably dangerous”:  Product must be in defective condition when sold.  Defendant is in the business of selling the product.  Product must be unreasonably dangerous.  Plaintiff must be physically harmed  Defective condition must be proximate cause of injury.  Goods are in substantially same condition as when sold.. Plaintiff must show product was so “defective” it was “unreasonably dangerous”: Plaintiff must show product was so “defective” it was “unreasonably dangerous”:  Product must be in defective condition when sold.  Defendant is in the business of selling the product.  Product must be unreasonably dangerous.  Plaintiff must be physically harmed  Defective condition must be proximate cause of injury.  Goods are in substantially same condition as when sold..

8. © 2004 West Legal Studies in Business A Division of Thomson Learning 8 Market Share Liability Theory of liability when multiple Defendants contributed to manufacture of defective product. Theory of liability when multiple Defendants contributed to manufacture of defective product. Liability of each Defendant is proportionate to the share of the market held by each respective Defendant.. Liability of each Defendant is proportionate to the share of the market held by each respective Defendant.. Theory of liability when multiple Defendants contributed to manufacture of defective product. Theory of liability when multiple Defendants contributed to manufacture of defective product. Liability of each Defendant is proportionate to the share of the market held by each respective Defendant.. Liability of each Defendant is proportionate to the share of the market held by each respective Defendant..

9. © 2004 West Legal Studies in Business A Division of Thomson Learning 9 Defenses to Product Liability Assumption of Risk. Assumption of Risk. Contributory/Comparative Negligence.. Contributory/Comparative Negligence.. Assumption of Risk. Assumption of Risk. Contributory/Comparative Negligence.. Contributory/Comparative Negligence..

10. © 2004 West Legal Studies in Business A Division of Thomson Learning 10 Warranty Liability Express warranty Express warranty Warranty of merchantability Warranty of merchantability Warranty of fitness for a particular purpose.. Warranty of fitness for a particular purpose.. Express warranty Express warranty Warranty of merchantability Warranty of merchantability Warranty of fitness for a particular purpose.. Warranty of fitness for a particular purpose..