STRICT LIABILITY AND PRODUCT LIABILITY CHAPTER 6 STRICT LIABILITY AND PRODUCT LIABILITY © 2010 Pearson Education, Inc., publishing as Prentice-Hall

Product Liability The liability of manufacturers, sellers, and others for the injuries caused by defective products.

Fault-Based Theories Negligence Misrepresentation

Fault-Based Theories (continued) Negligence Defendant breached a duty of due care to the plaintiff that caused the plaintiff’s injuries. E.g., negligent product design, failure to assemble properly, failure to inspect, failure to warn.

Fault-Based Theories (continued) Misrepresentation Seller or lessor fraudulently misrepresents the quality of a product or conceals a defect in it. Recovery limited to persons who relied on the misrepresentation.

Strict Liability In Greenmun v. Yuba Power Products, Inc., California adopted doctrine of strict liability in tort as a basis for product liability actions. Most states now recognize this doctrine.

Strict Liability (continued) Liability Without Fault Unlike negligence, strict liability does not require the injured person to prove that the defendant breached a duty of care. May be liable even though exercised all possible care.

Strict Liability Defendants Sellers and lessors engaged in business of selling or leasing products. All parties in the chain of distribution All manufacturers, distributors, wholesalers, retailers, lessors, and subcomponent manufacturers NOT for non-merchants E.g., selling to neighbor at garage sale

Strict Liability Plaintiffs Any injured party. Privity of contract not required. Recovery possible even if the injured party had no contractual relations with the defendant. E.g., injured bystander

Strict Liability Damages Damages for personal injuries available in all jurisdictions. Property damage recoverable in most jurisdictions Economic loss in few jurisdictions Punitive damages generally allowed if defendant either: Intentionally injured plaintiff, or Acted with reckless disregard.

Negligence, Strict Liability Compared Manufacturer (negligent) Defendant Defendant Defective product Distributor Defendant All in the chain of distribution are liable Negligent party is liable Defendant Retailer Negligence Strict liability Consumer lawsuit lawsuit Defective product causes injury

Defective Product To recover for strict liability, the injured party must first show that the product that caused the injury was somehow defective. Plaintiff can allege multiple product defects in one lawsuit.

Defective Product (continued) Design Manufacture Packaging The most common types of defects: Failure to Warn 3

Defect in Manufacture Defect that occurs when manufacturer fails to: Properly assemble a product Properly test a product, or Adequately check the quality of a product. E.g., screw in ladder not inserted as usual, or mouse found in soft drink bottle.

Defect in Design Defect that occurs when a product is improperly designed. E.g., Toys designed with removable parts that could be swallowed by children. Machines and appliances designed without proper safeguards. Trucks designed without a backup warning device.

Defect in Design (continued) In evaluating the adequacy of a product’s design, courts apply a risk-utility analysis Gravity of the danger posed by the design Likelihood that injury will occur Availability and cost of producing a safer design Social utility of the product

Crashworthiness Doctrine Automobile manufacturers have duty to design automobiles taking into account the possibility of harm from a person’s body striking something inside the automobile in case of a car accident.

Failure to Warn Defect that occurs when a manufacturer does not place a warning on the packaging of products that could cause injury if the danger is unknown. Proper and conspicuous warning insulates all in chain of distribution.

Defect in Packaging Manufacturers owe a duty to design and provide safe packages for their products. E.g., make package sufficiently tamperproof. Failure to meet this duty subjects all in chain of distribution of the product to strict liability.

Other Product Defects Failure to provide adequate instructions Inadequate testing of products Inadequate selection of component parts or materials Improper certification of the safety of a product

Defenses to Product Liability Supervening Event Generally Known Dangers Assumption of the Risk Defenses to Product Liability Government Contractor Defense Misuse of the Product Contributory & Comparative Negligence Statute of Limitations

Defenses to Product Liability (continued) Generally Known Dangers Certain products are inherently dangerous. E.g., guns, knives Products known to the general population to be so. Sellers are not strictly liable for failing to warn of generally known dangers.

Defenses to Product Liability (continued) Government Contractor Defense Contractor who was provided specifications by the government is not liable for any defect in the product that occurs as a result of those specifications. Product must conform to specifications. Contractor must have warned of known defects or dangers.

Defenses to Product Liability (continued) Assumption of Risk Defendant must prove that plaintiff knew and appreciated the risk, and Plaintiff voluntarily assumed the risk. Narrowly applied in strict liability cases.

Defenses to Product Liability (continued) Misuse of the Product Relieves the seller of product liability if the user abnormally misused the product. Unforeseeable misuse. Products must be designed to protect against foreseeable misuse. E.g., toy manufacturers must foresee that babies will put small items in their mouths, which could cause choking.

Defenses to Product Liability (continued) Correction of a Product Defect Manufacturer must notify purchasers and users, and offers to correct defect by repair or replacement. Letters, notices in newspapers If user ignores notice, manufacturer has defense against product liability.

Defenses to Product Liability (continued) Supervening Event Alteration or modification of a product by a party that absolves seller from strict liability. Modification must be made after it leaves seller’s possession. Alteration must cause injury.

Statute of Limitations Plaintiff must bring action within a certain number of years from the time that he or she was injured by the defective product. Limitation period set by each state. Defendant relieved of liability if action not brought within limitation period.

Statute of Repose Limits the seller’s liability to a certain number of years from the date when the product was first sold. Varies from state to state.

Contributory Negligence Plaintiff who contributed to own injuries cannot recover from the defendant in negligence Typically not a bar to recovery in strict liability.

Comparative Negligence Plaintiff is partially responsible for own injuries. Damages proportioned between plaintiff and defendant. May apply in strict liability and negligence.