Ch. 10 Strict Liability and Damages BLAW

Strict Liability

A defendant can be held legally responsible for causing injury even if they were not negligent and did not intend to cause harm

strict products liability

Liability for injuries caused by selling an unreasonably dangerous defective product, regardless of how careful the seller was

Commercial sellers—manufacturers, wholesalers, retailers, parts suppliers, and assemblers.

Who can be sued under strict products liability?

Non-commercial sellers, such as neighbors or private individuals selling used items.

Who CANNOT be sued under strict products liability?

Yes. Liability does not depend on knowledge or care.

Does strict liability apply if the seller had no knowledge of the defect?

Pure economic losses (e.g., lost profits due to defective machinery). These require a contract claim.

What losses are NOT recoverable through strict products liability?

production defect

When a product is not manufactured according to its own specifications or standards.

Example of a production defect

New car sold with defective brakes; a condom found in restaurant chowder (real case)

design defect

The product is manufactured as intended but the design itself is unreasonably dangerous

Yes. Failure to warn of dangers can make a product defective

Can inadequate warnings be treated as design defects?

No. Contributory negligence does not bar recovery under strict liability.

Is contributory negligence a defense to strict products liability?

Yes. If the plaintiff knowingly and voluntarily used a risky product, liability may be reduced or eliminated.

Is assumption of the risk a defense to strict liability?

When the plaintiff uses the product in an unforeseeable or improper way (e.g., removing safety guards)

What is misuse in strict liability?

No. Meeting minimum federal standards does not guarantee a product is non-defective.

Can compliance with federal safety standards prevent strict liability?

tort reform

Legislative changes aimed at limiting liability in tort cases, especially product liability.

statute of repose in product liability

A law limiting how long after a product is sold a plaintiff can sue (e.g., 25 years)

ultrahazardous (abnormally dangerous) activity

An activity so dangerous that the defendant is strictly liable for injuries, even if they used the utmost care

examples of ultrahazardous activities

Using explosives, transporting poisons, keeping dangerous wild animals, storing large amounts of liquid

Because the risk of serious harm is high and cannot be eliminated even with careful behavior

Why is strict liability used for ultrahazardous activities?

No — liability applies regardless of fault

Does strict liability require proof of negligence?

dram shop act

law making bars/stores strictly liable for injuries caused by their intoxicated or underage customers

Bars, restaurants, and stores that improperly sell or serve alcohol

Who can be sued under dram shop laws?

Serving alcohol to minors or visibly intoxicated persons who later cause injury

What usually triggers dram shop liability?

Yes — unless a specific exception applies

Are common carriers strictly liable for damage to goods?

5 exceptions where common carriers are NOT liable

• Act of God

• Act of an enemy

• Order of public authority

• Inherent nature of goods (Perishable fruits spoiling during transit)

• Misconduct or improper packaging by the shipper (Improperly packaged items that get damaged)

To make the plaintiff "whole again" financially by compensating them for losses caused by the injury

What is the purpose of damages in tort law?

compensatory damages

Damages meant to compensate the plaintiff for actual losses resulting from the injury

• Past and future medical expenses

• Past and future economic loss

• Past and future pain and suffering

What are the three main categories of compensatory damages?

Yes—mental distress is compensable under compensatory damages.

Can a plaintiff recover damages for mental distress?

punitive damages

Extra damages awarded to punish the defendant for intentional, malicious, fraudulent, or extremely reckless (willful and wanton) behavior

To punish wrongful conduct and deter the defendant and others from similar behavior.

What is the purpose of punitive damages?

Exemplary damages

What is another name for punitive damages?

In intentional torts or cases involving gross negligence or willful and wanton conduct.

When are punitive damages typically awarded?

A single-digit ratio (e.g., 1:1 up to 9:1).

What ratio of punitive to compensatory damages did the Court suggest as typically constitutional?

• How bad the defendant’s conduct was

• The ratio of punitive to compensatory damages

• Comparison to criminal or civil penalties for similar conduct

What factors must courts consider when evaluating punitive damages?

They violate due process because they punish far beyond the actual harm.

Why did the Court worry about extremely high ratios of punitive damages?