Business Law Chapter 10

Design defect

A flaw in the way a product was planned or designed that makes it unreasonably dangerous, even if it was manufactured perfectly according to the design.

Express warranty

A specific promise or guarantee made by a seller about the quality, condition, or performance of a product, either verbally or in writing.

Failure to provide adequate warnings

A product defect that occurs when a manufacturer does not sufficiently warn consumers about risks or dangers associated with using the product.

Implied warranty of fitness for a particular purpose

An unwritten guarantee that arises when a seller knows the buyer needs a product for a specific purpose and the buyer relies on the seller's judgment to select the right product.

Implied warranty of merchantability

An unwritten guarantee automatically included in a sale by a merchant that the product is fit for its ordinary intended use.

Manufacturing defect

A flaw that occurs during the production process that makes a specific product different from and more dangerous than the others in the same product line.

Market share theory

A legal theory that allows plaintiffs to sue multiple manufacturers of an identical product when they cannot identify which specific manufacturer caused their harm, with each manufacturer paying damages proportional to their share of the market.

Strict product liability

A legal doctrine that holds manufacturers and sellers liable for injuries caused by defective products regardless of whether they were negligent or intended any harm.

Warranty

A promise or guarantee made by a seller or manufacturer about the condition, quality, or performance of a product.