Product Liability Study Notes
Product Liability
Definition of Product Liability Law
Product Liability Law: A body of law that holds manufacturers, retailers, and sellers responsible for dangerous or defective products in the stream of commerce.
Liability: The legal obligation of manufacturers and sellers to compensate buyers, users, and even bystanders for damages or injuries caused by defects in the goods purchased.
Governs product liability litigation.
Types of Product Liability
When to Sue: Injured parties can sue manufacturers or sellers for product liability when defective products cause injury.
Types:
Negligence: Manufacturer fails to exercise reasonable care.
Strict Liability: Liability imposed without the need to prove negligence.
Breach of Warranty: Violation of guarantee regarding the product's safety or functionality.
Most Common Doctrine: Strict liability, widely adopted in most states.
Product Liability - Negligence
Negligence Suits: Plaintiffs can sue manufacturers for negligence when a defective product causes injury.
Liability: Only the manufacturer is liable under this theory.
Example: A motorcycle assembly can be negligent if an important screw is left out, leading to injury during normal operation.
Strict Liability
Definition: The most common product liability type, making all parties in the distribution chain liable for damages caused by a defective product, regardless of fault.
Involved Parties: Manufacturers, distributors, wholesalers, retailers, etc.
Benefits for Plaintiffs: Removes many complexities associated with proving negligence.
Key Characteristics:
Liability without fault.
Applies to sellers and lessors in the business of selling/ leasing products.
Does not cover casual sales by nonmerchants.
Chain of Distribution
Definition: Includes all parties involved in getting a product to the consumer, including manufacturers, distributors, wholesalers, retailers, and subcomponent manufacturers.
Liability: All in the chain can be held liable for injuries caused by the product.
Distinction Between Negligence and Strict Liability
Strict Liability
Injured party does not need to prove a breach of duty.
Applies to sellers engaged in the commercial sale of products.
All in the distribution chain are liable for the product's injuries.
Negligence
Liability rests solely on the negligent party in the chain.
Requires proof of duty, breach, causation, and damages.
Types of Product Defects
Defect in Manufacture: Product is made improperly, e.g., improperly assembled or poorly tested.
Defect in Design: Product designed incorrectly and is inherently unsafe.
Failure to Warn: Manufacturer or seller fails to provide adequate warnings for safe use.
Defect in Packaging: Inadequate tamper-proof packaging that may lead to consumer risk.
Defenses to Product Liability
Generally Known Danger: Certain products are known to be dangerous, manufacturers are not required to warn consumers.
Abnormal Misuse: If a product is used in a manner not intended or foreseeable, liability may be relieved.
Supervening Event: Alteration of the product that occurs after it leaves the manufacturer absolves prior sellers from liability.
Case Study: Cummins v. BIC USA, Inc.
Background: A child was burned by a removed child safety guard on a lighter.
Outcome: Jury ruled BIC not liable as the guard was removed prior to the incident.
Statute of Repose
Definition: Limits seller's liability to a set number of years from when the product was first sold.
Variation: The period of repose varies by state.
Strict Liability Characteristics (Recap)
Does not require proof of breach of duty.
Applies to sellers involved in selling or leasing products.
All in the distribution chain are responsible for defective products.
Injured parties must prove the product caused the injury.
Product Defects Explored
Defect in Manufacture: Failure to properly assemble or test a product.
Defect in Design: An inherency in the design renders the product unreasonably dangerous.
Failure to Warn: Lack of warnings or instructions leading to consumer misunderstanding of risks.
Defect in Packaging: Safety packaging, which is critical to prevent tampering.
Important Cases in Product Liability
Shoshone Coca-Cola Bottling Co. v Dolinski: A case involving a soft drink containing a decomposed mouse. The court ruled in favor of strict liability due to a defect in manufacture.
Patch v. Hillerich & Bradsby Co.: A case regarding an aluminum bat where the manufacturer failed to warn about increased risks.
Aleo v. SLB Toys USA, Inc.: Involved the sale of a pool slide leading to fatal injuries. The jury found Toys R Us grossly negligent.
Martinez v. Houston McLane Co. LLC: A case addressing whether a baseball team is liable for injuries to spectators, applying the baseball rule.
Conclusion
Product liability encompasses a wide range of issues from negligence to strict liability and defenses surrounding product safety. The law seeks to hold accountable those in the distribution chain for injuries caused by defective products, while also providing a framework for legal defenses based on misuse, known dangers, and alterations post-sale. Understanding these principles is critical for anyone involved in the manufacturing, selling, or legal prosecution of product-related claims.