Strict Liability Chapter 6

Strict Liability Do we care who is at fault? Hypo: I decide to build a new garage. I use dynamite to breakup my cement garage floor. I use more care than the reasonable person. However, the dynamite sends cement flying across my lot and it smashes my neighbors car window. Am I negligent? Would I be held liable under strict liability?

Abnormally Dangerous Activities Abnormally dangerous activity is an activity that 1) involves potentially serious harm to people or property 2) involves a high degree of risk that cannot be eliminated by reasonable care 3) is not normally performed in surrounding area

Product Liability Oh – I found a syringe in my Pepsi! Product liability covers negligence Manufacturers must exercise due care when manufacturing else its negligence Covers Warning labels Testing Inspection Assembly

Negligent Manufacturing Jane opens a can of soda and acids shoots out and hits her in the fact. The acid causes 3rd degree burns. Can she recover under negligence theory? What if instead of hitting Jane, the soda hits a passerby on the street. Can the passerby recover? Does it matter that Jane bought the soda?

Fraudulent Misrepresentation Seller conceals a defect with a product Must be made knowingly or recklessly Injury must result if damages are to be awarded Nonfraudulent misrepresentation occurs when a merchant innocently misrepresents a product Both fraudulent and nonfraudulent require the misrepresentation of a material fact

Strict Product Liability Not available in Virginia or Massachusetts First adopted by California What is the policy behind strict liability?

Requirements for Strict Liability Six Requirements 1) product must be in a defective state when sold 2) defendant must engaged in selling or distributing the product 3) the product must be unreasonably dangerous to the user because of the defect 4) the plaintiff must incur harm to self or property 5) defective condition must be the proximate cause of the injury or damage 6) the goods must not have been substantially changed from the time the product was sold to the time the injury was sustained

Unreasonably Dangerous Products Plaintiff must show the product was unreasonably dangerous not how it got that way Plaintiff must also show the product was unreasonably dangerous when it left the manufacturers hands Unreasonably dangerous either It was dangerous beyond the expectation of the average manufacturer A less dangerous alternative was economically available

Product Defects Manufacturing defects occur when product departs from intended use Liability imposed on manufacturer, wholesaler, and retailer Design defects occur when dangerous attribute could have been avoided by alternative design Alternative design must have been reasonable

More Product Defects Warning defects occur when product contains inadequate warnings or instructions Must take care to warn of foreseeable risks Courts look at Intended user groups Risk of product Content No need to warn of obvious risks May detract from needed warnings Foreseeable risks See case on page 132 and 133

Market Share Liability Hypo: A child eats lead paint and becomes ill. Who should the parent sue? How do you know who manufactured the paint? Market share liability imposes liability on all manufactures during the relevant time period in proportion to market share

Defenses to Strict Liability Assumption of risk Plaintiff knew of risk & voluntarily accepted risk Product Misuse Manufacturer should guard against obvious misuses Commonly known dangers Statute of Limitations