Week 9: Product Liability Vocab (copy)

Assumption of risk

Defense in negligence cases that prevents an injured party from recovering if it can be established that the injured party realized the risk and engaged in the conduct anyway.

Bait and switch

Advertising technique in which a low-price product is advertised, and then the customer is told that the product is unavailable or is talked into a higher-priced product; prohibited by the FTC.

Caveat emptor

Latin term for 'Let the buyer beware'.

Comparative negligence

Negligence defense that allocates responsibility for an accident between the plaintiff and defendant when both were negligent and allocates the recovery in proportion to liability.

Consent decree

For administrative agencies, a type of plea bargain; a settlement document for an administrative agency’s charges.

Contributory negligence

Negligence defense that bars an injured party from recovering any damages if the injured party acted in a negligent way and contributed to her own injuries.

Corrective advertising

FTC remedy that requires a company to run ads explaining previous deceptive ads or run a new statement in future ads.

Disclaimers

A provision in a contract that eliminates liability such as a warranty disclaimer or a disclaimer of tort liability.

Express warranty

Expressed promise by seller as to the quality, abilities, or performance of a product.

Federal Trade Commission (FTC)

Federal agency responsible for regulation of unfair and deceptive trade practices, including deceptive advertisements.

Implied warranty of fitness for a particular purpose

Warranty given by seller to buyer that promises goods will meet the buyer’s specified needs.

Implied warranty of merchantability

A warranty that the goods are of average quality; given in every sale of goods by a merchant.

Misuse

In product liability, a defense based on the plaintiff’s failure to follow instructions or use of a product for improper purposes.

Privity

Direct contractual relationship; example: if I sell my car to you, we have privity of contract.

Strict liability

Liability without fault.

Unconscionable

A defense to an otherwise valid contract that is grossly unfair to one side in the contract.