1. Strict Liability
Chapter 6

2. 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?

3. 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

4. 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

5. 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?

6. 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

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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