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 - Term given to advertising technique in which a low-price product is
advertised and then the customer is told that the product is unavailable or is talked into a
higher-priced product; prohibited by the FTC.
Caveat emptor - Latin term for “Let the buyer beware”.
Comparative negligence - In negligence, a defense that allocates responsibility for an
accident between the plaintiff and defendant when both were negligent and allocates the
recovery in proportion to liability.
Consent decree - For administrative agencies, a type of plea bargain; a settlement
document for an administrative agency’s charges.
Contributory negligence - Negligence defense that bars an injured party from recovering
any damages if the injured party acted in a negligent way and contributed to her own
injuries.
Corrective advertising - FTC remedy that requires a company to run ads explaining
previous deceptive ads or run 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 - Expressed promise by seller as to the quality, abilities, or performance
of a product.
Federal Trade Commission (FTC) - Federal agency responsible for regulation of unfair
and deceptive trade practices, including deceptive advertisements.
Implied warranty of fitness for a particular purpose- Warranty given by seller to buyer
that promises goods will meet the buyer’s specified needs.
Implied warranty of merchantability - A warranty that the 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 use of a product for improper purposes.
Privity - Direct contractual relationship. For example, if I sell my car to you, we have
privity of contract because we are the parties to that contract. If you sell the car to a
friend, I do not have privity with the friend.
Strict liability - Liability without fault
Unconscionable - A defense to an otherwise valid contract that is grossly unfair to one
side in the contract.