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Transcript of 25-1 Chapter 6 Product and Strict Liability. Introduction to Product and Strict Liability Product...
25-1
Chapter 6Product and Strict Liability
Introduction to Product and Strict Liability
Product Liability: Liability of manufacturers, sellers, lessors, and others for injuries caused by defective products
Strict Liability: A plaintiff may recover punitive damages if the defendant’s conduct has been reckless or intentional
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-2
Product Liability: Negligence
Negligence Requires the defendant to be at fault for causing
the plaintiff’s injuries The plaintiff must prove that:
The defendant breached a duty of due care to the plaintiff
This breach caused the plaintiff’s injuries
Only a party who was actually negligent is liable to the plaintiff
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-3
Product Liability: Negligence
Failure to exercise duty of care includes: Failing to assemble a product carefully Negligent product design Negligent inspection or testing of a product Negligent packaging Failure to warn of the dangerous propensities of a
product
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-4
Product Liability: Misrepresentation
Misrepresentation Occurs when a seller or lesser either:
Fraudulently misrepresents the quality of a product
Conceals a defect in it Recovery is limited to persons who relied on the
misrepresentation
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-5
Product Liability: Strict Liability
Doctrine of strict liability in tort Strict liability is liability without fault Makes manufacturers, distributors, wholesalers,
retailers, and others in the chain of distribution of a defective product liable for the damages caused by the defect, irrespective of fault
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-6
Product Liability: Strict Liability
Liability without fault Does not require the injured person to prove that
the defendant breached a duty of care Casual sales and transactions by nonmerchants are
not covered Applies only to products, not services
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-7
Product Liability: Strict Liability
Chain of distribution Comprises of:
Manufacturers Distributors Wholesalers and retailers Lessors Subcomponent manufacturers
All parties in the chain of distribution of a defective product are strictly liable for the injuries it causes
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-8
Product Liability: Strict Liability
Parties who can recover for strict liability Any injured party Privity of contract not required Recovery possible even if the injured party had no
contractual relations with the defendant Bystanders and non-users are entitled to the same
protection as users
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-9
Product Liability: Strict Liability
Damages recoverable for strict liability Damages recoverable vary by jurisdiction Property damage recoverable in most jurisdictions Economic loss in few jurisdictions Some jurisdictions limit the dollar amount of the
award Punitive damages generally allowed if defendant
recklessly or intentionally injured the plaintiff
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-10
Product Defects
To recover for strict liability, the injured party must first show that the product that caused the injury was somehow defective
The injured party does not have to prove who caused the product to become defective
Plaintiff can allege multiple product defects in one lawsuit
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-11
Product Defects
Defect in manufacturing Defect in design Defective packaging Failure to warn Inadequate instructions
6-12
Case 6.1: Defect in Manufacture
Case Shoshone Coca-Cola Bottling Company v.
Dolinski 82 Nev. 439, 420 P.2d 855, Web 1966 Nev. Lexis
260 Supreme Court of Nevada
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-13
Case 6.1: Defect in Manufacture
Issue Should the state of Nevada judicially adopt the
doctrine of strict liability? If so, was there a defect in the manufacture of the Squirt bottle that caused the plaintiff’s injuries?
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-14
Defect in Design
Defect that occurs when a product is improperly designed
Evaluation of adequacy of a product’s design: Risk-utility analysis Consumer expectation test
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-15
Case 6.2: Design Defect
Case Domingue v. Cameco Industries, Inc. 936 So.2d 282, Web 2006 La. App. Lexis 1593
(2006) Court of Appeal of Louisiana
Issue Is the forward blind spot on Cameco’s 405-B
dump truck a design defect?
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-16
Defect in Design
Crashworthiness doctrine:
Automobile manufacturers have duty to design automobiles taking into account the possibility of a second collision
They should take into account the possibility of harm from a person’s body striking something inside the automobile in the case of a car accident
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-17
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
Failure to warn is a defect that will support a strict liability action
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-18
Defect in Packaging
Manufacturers owe a duty to design and provide safe packages for their products
Containers should be: Tamperproof Clearly indicate tampering
Defective packaging subjects the chain of distribution to strict liability
6-19Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
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
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-20
Defenses to Product Liability
Generally known dangers Certain products are inherently dangerous These products are known to the general
population to be inherently dangerous Sellers are not strictly liable for failing to warn of
generally known dangers
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-21
Defenses to Product Liability
Government contractor defense Contractors that manufacture products to
government specifications are not usually liable if such a product causes injury
Abnormal misuse of the product Relieves the seller of product liability if the user
abnormally misused the product
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-22
Defenses to Product Liability
Supervening event
The manufacturer or seller is not liable if:
A product is materially altered or modified after it leaves the seller’s possession
The alteration or modification causes an injury
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-23
Defenses to Product Liability
Assumption of risk Defendant must prove that the plaintiff:
Knew and appreciated the risk Voluntarily assumed the risk
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-24
Defenses to Product Liability
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 is relieved of liability if action is not
brought within limitation period
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-25
Defenses to Product Liability
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
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-26
Defenses to Product Liability
Plaintiff partially at fault Types
Contributory negligence Comparative negligence
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-27
Defenses to Product Liability
Contributory negligence Plaintiff who contributed to own injuries cannot
recover from the defendant in negligence Contributing plaintiff cannot recover damages
even if the product was defective
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-28
Defenses to Product Liability
Comparative negligence Applies when a plaintiff is partially responsible for
causing his own injuries Liability is assessed proportionately to the degree
of fault of each party Damages are apportioned proportionally between
the plaintiff and the defendant
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-29
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 6-30