MGMT 200 - Strict Liability & Products Liability

Strict Liability

the imposition of absolute liability on a defendant without a finding of fault

such as tortious intent or negligence

Plaintiff need only prove that the tort occurred and the defendant was responsible

Strict Liability - Animals

Domestic Animals: No strict liability for injuries caused by domestic animals unless the defendant knew of the animal’s dangerous propensities

ex. Cats, dogs, cattle, horses, etc.

Wild Animals: Possessors of wild animals are strictly liable for harm done by the animal

ex. Rattlesnakes, coyotes, monkeys, bears, etc.

Strict Liability - Abnormally Dangerous Activities

Unusually dangerous activities subject to strict liability based on balancing risk versus utility

Factors to consider:

1. is there a high risk of great harm?

2. Can the risk be eliminated w reasonable care

3. common activity?

4. Appropriate to the area?

5. Utility to society versus risk to society?

Products Liability

refers to a manufacturer or seller being held liable for placing a defective product into the hands of a customers

Strict Products Liability

A commercial supplier places a product in the stream of commerce in an unreasonably dangerous defective condition which causes damages

Manufacturing Defect:

Product comes out of factory wrong

Design Defect

Risk/Benefit Test: Do risks outweigh benefits of the product?

Consumer Expectation Test: is the product dangerous beyond expectations of ordinary consumers

Warning Defect

• Duty to warn of foreseeable significant risks at the time of manufacture

• Types

  • Absence of warning

  • Inadequate warning

Express Warranty

Statement about the safety/functionality of product that is not true and causes injury

Implied Warranty

of merchantability OR fitness for a particular purpose

Merchantability

Fit for average purpose intended at time sold

Fitness for Particular Purpose

Implicitly warranted for

ex. cold weather sleeping bag