1. Products Liability “Liability for Defective Products”

2. Products Liability Definition: Definition: Corporate liability for injuries or damages suffered by the user from defective products Corporate liability for injuries or damages suffered by the user from defective products Restatement of Torts (Section 402(a)) Restatement of Torts (Section 402(a)) Applies to manufacturers, sellers and distributors of goods Applies to manufacturers, sellers and distributors of goods

3. Recoverable Damages Personal injuries Personal injuries Past, present and future Past, present and future Fair and adequate compensation Fair and adequate compensation Medical expenses Medical expenses Lost earnings Lost earnings Pain and suffering Impaired future earnings capacity Property damage Punitive damages (most states)

4. Punitive Damages Awarded to Plaintiff over and above full compensation for injuries Awarded to Plaintiff over and above full compensation for injuries Intended to “punish” defendant and “deter” others from following the defendants example Intended to “punish” defendant and “deter” others from following the defendants example Example: Example: Coffee spill cases Coffee spill cases Airline crashes Airline crashes

5. Legal Theories “Causes of action” “Causes of action” Legal theory under which plaintiff believes damages should be awarded Legal theory under which plaintiff believes damages should be awarded Basis of courts jurisdiction Basis of courts jurisdiction Three theories in Product liability cases: Three theories in Product liability cases: Negligence Negligence Breach of Warranty Breach of Warranty Strict Liability Strict Liability

6. Strict Liability Liability without fault Liability without fault Raw Oysters Raw Oysters Naturally contaminated Naturally contaminated How do you prove a food product is “defective” How do you prove a food product is “defective” Can foods be made risk free? Can foods be made risk free? Congress doesn’t think so Congress doesn’t think so Proximate Causation Proximate Causation

7. Negligence Most common cause of action in food law cases Most common cause of action in food law cases Failure to exercise reasonable care under circumstances Failure to exercise reasonable care under circumstances “Prudent food processor” “Prudent food processor” Contributory Negligence Contributory Negligence Duty, breach, damages Duty, breach, damages

8. “Negligence Per Se” Violation of a regulation which was designed to prevent the type of harm suffered by the plaintiff Violation of a regulation which was designed to prevent the type of harm suffered by the plaintiff HACCP is a regulation specifically designed to prevent contamination HACCP is a regulation specifically designed to prevent contamination Failure of follow HACCP may be “NPS” Failure of follow HACCP may be “NPS”

9. Breach of Warranty Manufacture liable if product was not “reasonably safe” and did not conform to an express or implied warranty Manufacture liable if product was not “reasonably safe” and did not conform to an express or implied warranty Strict liability if warranty breached Strict liability if warranty breached Express vs. Implied Warranties Express vs. Implied Warranties Express = “basis of the bargain” Express = “basis of the bargain” Implied = given by someone “in the business of selling” Implied = given by someone “in the business of selling”

10. Effect of HACCP HACCP can be evidence that defendant took “reasonable care” HACCP can be evidence that defendant took “reasonable care” Not negligence because: Not negligence because: HACCP shows that manufacture use reasonable care HACCP shows that manufacture use reasonable care Not Breach of Warranty because: Not Breach of Warranty because: Following HACCP means product means “prevailing standard of quality” Following HACCP means product means “prevailing standard of quality”