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Product Liability Principles
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Negligence
A manufacturer fails to exercise reasonable care in the design, production, or warning of their product resulting in harm. An example is a car manufacturer that does not test brake systems adequately, leading to accidents.
Strict Liability
Manufacturers are responsible for damages caused by defects in their products, regardless of negligence. For example, if a bicycle wheel fails due to improper construction, the manufacturer is liable for the resulting accident.
Manufacturing Defect
A flaw that occurs during the construction or production of the item, diverging from the design. For example, a batch of medicine contaminated with a toxic substance during production.
Enterprise Liability
Holds all firms in an industry responsible when there is joint control and adequate deterrence is necessary. An example can be industries that produce inherently dangerous products, like explosives.
Breach of Warranty
Occurs when a product does not meet specified standards set by express or implied warranties, leading to injury. For instance, a waterproof watch that leaks under water causing skin irritation breaches its implied warranty of merchantability.
Design Defect
Intrinsic flaw in a product's design making it inherently unsafe. An example is a chair designed with insufficient support, causing it to collapse under normal use.
Comparative Fault
Reduces the plaintiff's damages award by the percentage of fault attributed to them. For example, if a user misuses a power tool in a way that contributes to their injury, their compensation may be reduced proportionally.
Risk-Utility Test
Assesses whether the risks of a product design outweigh the utility to the user and public. Example: A saw without a safety guard may be deemed too risky compared to its utility.
Market Share Liability
Assigns liability among all manufacturers proportionally to their share of the market when the exact source of a harmful product is unknown. For instance, multiple manufacturers of a harmful drug may share liability based on their market presence.
Successor Liability
A company that acquires another is liable for the predecessor's product liabilities. For example, if Company A acquires Company B, Company A could be liable for injuries caused by Company B's products.
Warning Defect
Occurs when a product lacks adequate instructions or warnings about its use, leading to injury. An example is a powerful cleaning chemical sold without proper use instructions, resulting in chemical burns.
Consumer Expectation Test
A legal standard evaluating whether a product's design meets the safety expectations of an ordinary consumer. An example is a stroller that collapses while in use, an unforeseen outcome for a consumer.
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