1. Negligence and Strict Liability

2. Products Liability The liability of manufacturers, sellers, and others for the injuries caused by defective products.

3. Negligence and Fault Negligence Intentional Misrepresentation

4. Negligence and Fault (continued) Negligence –A person injured by a defective product may sue. –The plaintiff must prove that the defendant breached a duty of due care to the plaintiff that caused the plaintiff’s injuries. –In a negligence lawsuit, only a party who was actually negligent is liable to the plaintiff.

5. Negligence and Fault (continued) Negligence (continued) –Consumer can recover damages from the manufacturer of the product even though he or she was only in privity of contract with the retailer

6. Tort Liability Based on Fault (continued) Negligence (continued) Failure to exercise due care includes: –Failing to assemble the product carefully. –Negligent product design. –Negligent inspection or testing of the product. –Negligent packaging. –Failure to warn of the dangerous propensities of the product.

7. Tort Liability Based on Fault (continued) Misrepresentation –Seller or lessor fraudulently misrepresents the quality of a product, or conceals a defect in it –Recovery limited to persons injured because they relied on the misrepresentation.

8. Strict Liability (continued) Liability Without Fault –Unlike negligence, strict liability does not require the injured person to prove that the defendant breached a duty of care. – Strict liability is imposed on manufacturers, sellers, and lessors who make and distribute defective products that cause injury to users and others.

9. Strict Liability (continued) Chain of Distribution –All parties in the chain of distribution of a defective product are strictly liable for the injuries caused by that product. –All manufacturers, distributors, wholesalers, retailers, lessors, and subcomponent manufacturers may be sued under doctrine of strict liability in tort

10. Defective product causes injury Negligence lawsuit Strict liability Consumer Retailer Distributor Manufacturer (negligent) Defective product Defendant All in the chain of distribution are liable Negligent party is liable Doctrines of Negligence and Strict Liability Compared

11. Defective Product To recover for strict liability, the injured party must first show that the product that caused the injury was somehow defective. Plaintiffs can allege multiple product defects in one lawsuit.

12. Defective Product (continued) The most common types of defects: Manufacture Design Packaging Failure to Warn

13. Defect in Manufacture Defect that occurs when the manufacturer fails to: 1. Properly assemble a product 2. Properly test a product, or 3. Adequately check the quality of a product

14. Defect in Design Defect that occurs when a product is improperly designed. Design defects include: 1. Toys designed with removable parts that could be swallowed by children. 2. Machines and appliances designed without proper safeguards. 3. Trucks designed without a backup warning device.

15. Defect in Design (continued) In evaluating the adequacy of a product’s design, the courts apply a risk-utility analysis –Gravity of the danger posed by the design –Likelihood that injury will occur –Availability and cost of producing a safer design –Social utility of the product

16. Failure to Warn Defect that occurs when a manufacturer does not place a warning on the packaging of products that could cause injury if the danger is unknown. Proper and conspicuous warning insulates all in chain of distribution

17. Defect in Packaging Defect that occurs when a product has been placed in packaging that is insufficiently tamperproof. –Manufacturers owe a duty to design and provide safe packages for their products. –Failure to meet this duty subjects the manufacturer and others in the chain of distribution of the product to strict liability.

18. Other Product Defects Failure to provide adequate instructions Inadequate testing of products Inadequate selection of component parts or materials Improper certification of the safety of a product

19. Generally Known Dangers Supervening Event Assumption of the Risk Misuse of the Product Statute of Limitations Government Contractor Defense Contributory & Comparative Negligence Defenses to Product Liability

20. Defenses to Product Liability (continued) Generally Known Dangers –Certain products are inherently dangerous –Products are known to the general population to be so –Sellers are not strictly liable for failing to warn of generally known dangers.

21. Defenses to Product Liability (continued) Government Contractor Defense –Contractor who was provided specifications by the government is not liable for any defect in the product that occurs as a result of those specifications –Product must conform to specifications –Contractor must have warned of known defects or dangers

22. Defenses to Product Liability (continued) Assumption of Risk –Defendant must prove that the plaintiff knew and appreciated the risk –the plaintiff voluntarily assumed the risk

23. Defenses to Product Liability (continued) Misuse of the Product –Relieves the seller of product liability if the user abnormally misused the product. –Products must be designed to protect against foreseeable misuse.

24. Defenses to Product Liability (continued) Correction of a Product Defect –Manufacturer must notify purchasers and users –Must correct defect –Usually achieved through recall and repair or replacement

25. Defenses to Product Liability (continued) Supervening Event –Alteration or modification of a product by a party that absolves seller from strict liability –Modification must be made after it leaves seller’s possession –Alteration must cause injury

26. Statute of Limitations Statute that requires an injured person to bring an action within a certain number of years from the time that he or she was injured by the defective product Limitation period set by each state Defendant relieved of liability if action not brought within limitation period

27. Contributory Negligence Person who is injured by a defective product Injured party has been negligent – contributed to his or her own injuries Cannot recover from the defendant.