legal environment of business chapter 7

strict liability

liability regardless of fault. in tort law, strict liability may be imposed on defendants in cases involving abnormally dangerous activites, dangerous animals, or defective products

product liability

the legal liability of manufactures, sellers, & lessors of goods to consumers, users, & bystanders for injuries or damages that are caused by the goods

privity of contract

the relationship that exists between the promisor, & the promisee of a contract

unreasonably dangerous product

in product liability, a product that is defective to the point of threatening a consumers health and safety. a product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dangerous alternative was economically feasible for the manufacturer, but the manufacturer failed to produce it

market-share liability

a theory under which liability is shared among all firms that is manufactured & distributed a particular product during a certain period of time. this theory of liability is used only when the specific source of the harmful product is unidentifiable

product misuse

a defense against product liability that may be raised when the plaintiff used a product in a manner not intended by the manufacturer. if the misuse is reasonably forseeable, the seller will not escape liability unless measures were taken to guard against the harm that could result from the misuse

tolled

the temporary suspension of the running of a prescribed period (such as a statute of limitations). for instance, a statute of limitations may be tolled until the party suffering an injury has discovered it or should have discovered it

statutes of repose

basically, a statute of limitations that is not dependent on the happening of a cause of action. statutes of repose generally begin to run at an earlier date & run for a longer period of time than statutes of limitations