Chapter 7: Strict and Product Liability

Chapter 7: Strict and Product Liability

Strict Liability

• Definition:

  • Strict liability refers to a legal standard where a defendant can be held liable for harm caused by their actions or products regardless of fault.

• Abnormally Dangerous (Ultrahazardous) Activities:

  • Activities that can be so inherently dangerous that there is a risk of harm even with reasonable care taken by the defendant.

  • Examples of such activities include:

  • Blasting

  • Storing explosives

  • Owning wild animals

Product Liability

• Definition:

  • Product liability refers to the legal responsibility of manufacturers and sellers (including wholesalers and retailers) for any physical injury or property damage caused by their products.

• Theories of Product Liability:

  • Liability can arise from various legal theories, including:

  • Negligence

  • Misrepresentation

  • Strict liability

  • Warranties

• Scope of Liability:

  • Product liability encompasses damages inflicted upon:

  • Consumers

  • Users

  • In some cases, bystanders

Product Liability Based on Negligence

• Obligations of Manufacturers:

  • Manufacturers have a duty to exercise due care in ensuring product safety. Key areas include:

  • Designing the product

  • Selecting materials

  • Utilizing appropriate production processes

  • Assembling and testing products

  • Placing adequate warnings on product labels to notify users of potential dangers

  • Inspecting and testing purchased components used in the final product

Privity of Contract:

• No privity of contract is required; any injured individual can sue for damages resulting from a defectively made product.

• Elements of a Negligence Action:

  • Plaintiffs must satisfy all four elements:

  • Duty

  • Breach

  • Causation

  • Damages

Product Liability Based on Misrepresentation

• Definition:

  • Misrepresentation occurs when a false statement regarding a product is made knowingly or with reckless disregard for the truth.

• Key Aspects of Misrepresentation:

  • No privity of contract is necessary

  • Misrepresentation must relate to a material fact (not mere opinions or 'puffery')

  • The seller must intend for the buyer to rely on the misrepresentation during the purchase decision

  • Misrepresentation in labels or advertisements demonstrates the seller's intent to induce reliance

  • The buyer must have relied on the misrepresentation and subsequently suffered harm

Product Liability Based on Strict Liability

• Definition:

  • Strict liability in product liability cases does not require privity of contract.

• Criteria for Strict Liability:

  • The product must be in a defective condition at the time it is sold:

  • Manufacturing Defect:

    • When a product deviates from its design resulting in physical flaws or incorrect assembly

  • Design Defect:

    • A reasonable alternative design exists, and failure to adopt that design renders the product unsafe

  • Inadequate Warnings:

    • Products must include warnings about foreseeable risks, with the reasonableness of warnings assessed

  • The defendant generally must be engaged in the business of selling or distributing the product

  • The product must be deemed unreasonably dangerous to users due to its defectiveness

  • The plaintiff must incur physical harm to themselves or their property as a result of the product

  • The defective condition must be the proximate cause of the harm

  • The product must not have been substantially changed from the time of sale to the time the injury occurred

Product Liability Based on Breach of Warranty

• Definition:

  • Breach of warranty arises from contract law and occurs when a product fails to meet the warranty obligations made by the manufacturer or seller.

• Privity of Contract Requirement:

  • Typically, privity of contract is required for breach of warranty claims.

Defenses to Product Liability

• Preemption:

  • Claim is preempted if the product is governed by an overarching federal regulatory scheme.

• Assumption of Risk:

  • The plaintiff knowingly accepted the risks associated with the product defect.

• Product Misuse:

  • The plaintiff used the product in a manner that was not intended or not foreseeable to the manufacturer.

• Comparative Negligence:

  • The plaintiff’s negligence contributed to their own injuries.

• Commonly Known Dangers:

  • Risks associated with certain product dangers are well established and known.

• Knowledgeable User:

  • Users with expertise in specific dangers pertaining to the product.

• Statutes of Limitation:

  • Legal time limits for filing claims that may bar the lawsuit.

Sample Question 1

• Scenario:

  • Nina uses a cheese grater with a guard that fails to protect her hand, and she sustains severe harm to her fingers. The product has not been altered since purchase.

• Question: Can Nina pursue a product liability claim based on strict liability against the manufacturer?

  • Yes, if she proves that the product’s defect made it unreasonably safe and that defect was a proximate cause of her injuries.

  • No, because there is no privity of contract between Nina and the manufacturer.

  • Yes, because Nina was injured by the product.

  • No, because she cannot prove manufacturer negligence in design and manufacture.