Week 9: Product Liability Vocab

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

An advertising technique where a low-price product is advertised and the customer is then told it is unavailable or is convinced to buy a higher-priced product; prohibited by the FTC.

Caveat emptor

Latin term for 'Let the buyer beware'.

Comparative negligence

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

Consent decree

A type of plea bargain for administrative agencies; a settlement document for charges by an administrative agency.

Contributory negligence

Negligence defense that bars an injured party from recovering any damages if they acted negligently and contributed to their own injuries.

Corrective advertising

FTC remedy requiring a company to run ads explaining previous deceptive ads or to include 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

An expressed promise by a seller regarding the quality, abilities, or performance of a product.

Federal Trade Commission (FTC)

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

Implied warranty of fitness for a particular purpose

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

Implied warranty of merchantability

A warranty that 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 using a product for improper purposes.

Privity

Direct contractual relationship; for 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.