Product Liability

Definition

Product liability refers to the legal obligation of any party involved in the manufacturing process of a product—including manufacturers, wholesalers, or retailers—to compensate for injuries caused by defective products. Under the law of torts, this obligation imposes strict liability on manufacturers if a product, knowing it will be used without inspection for defects, causes harm because of those defects.

Examples

Defective Automobile Parts: Suppose a car manufacturer sells vehicles with faulty airbags. If these airbags fail during an accident and cause injury to the occupants, the manufacturer can be held liable for the damages.
Toxic Chemicals in Cosmetics: A cosmetics company releases a new line of skin care products that contain a chemical causing severe allergic reactions. Affected consumers can file a product liability lawsuit against the company.
Malfunctioning Electronics: A smartphone with a battery that explodes due to a manufacturing defect can cause injury to users, holding the manufacturer liable for the damages.

Frequently Asked Questions

What is strict liability in product liability?

Strict liability is a legal doctrine under which a party is held liable for damages caused by their actions or products, regardless of any fault or negligence on their part. In the context of product liability, if a product causes harm due to a defect, the manufacturer is held responsible even if they exercised all possible care in making the product.

What are the types of product defects?

There are three main types of product defects: design defects, manufacturing defects, and marketing defects (or failure to warn). Design defects exist before the product is made, manufacturing defects occur during the production process, and marketing defects involve inadequate instructions or warnings about the product’s use.

Can retailers be held liable for defective products?

Yes, retailers can be held liable for injuries caused by defective products. Although they did not manufacture the product, they are part of the supply chain and responsible for ensuring the products they sell are safe for consumers.

How can consumers prove a product liability claim?

Consumers must generally prove that the product was defective, the defect existed when the product left the manufacturer’s control, the defect caused the injury, and that they were using the product as intended.

Are used products subject to product liability claims?

Typically, product liability laws apply primarily to new products. However, if a used product is defective and the defect results in injury, the seller could be liable depending on the defect’s nature and the seller’s knowledge of it.

Tort Law: A segment of law covering civil wrongs, including product liability, aimed at providing remedies to individuals harmed by the unreasonable actions of others.
Negligence: Failure to exercise reasonable care, which in product liability cases, complements strict liability claims by examining the manufacturer’s conduct.
Warranty: A guarantee made by the seller about the condition of the product, which can be enforced if breached.
Recall: The action of retrieving defective products from the market to prevent harm to consumers.

Online Resources

Suggested Books for Further Studies

“Products Liability in a Nutshell” by David G. Owen.
“Product Liability Desk Reference: A Fifty-State Compendium, 2019 Edition” by Morton F. Daller and Nicholas Daller.
“American Law of Products Liability” by Timothy S. Hardy.
“Product Liability Case Digest” by Howard A. Janzen.

Fundamentals of Product Liability: Business Law Basics Quiz

### What is the primary concept behind strict liability in product liability cases? - [ ] The manufacturer is always at fault. - [ ] The manufacturer willfully caused harm. - [x] The manufacturer is liable regardless of fault. - [ ] The manufacturer must be proven negligent. > **Explanation:** Strict liability means that the manufacturer is held responsible for defects that cause injury, regardless of any fault or intent to harm. ### Which type of defect involves faults in the conceptualization of a product? - [x] Design defect - [ ] Manufacturing defect - [ ] Marketing defect - [ ] Packaging defect > **Explanation:** Design defects occur at the conceptualization stage, indicating that the product's initial blueprint contains harmful flaws. ### What role do retailers play in product liability claims? - [x] They can be held liable. - [ ] They are never liable. - [ ] Only manufacturers are held liable. - [ ] Liability depends on the product's cost. > **Explanation:** Retailers can be part of the supply chain and thus can be held liable for selling defective products. ### Why might a product be subject to a recall? - [ ] To promote a new version. - [x] To retrieve defective items that could cause harm. - [ ] To reduce manufacturing costs. - [ ] To comply with tax regulations. > **Explanation:** Recalls are performed to pull defective products from the market before they cause harm to consumers. ### What is required to prove a product liability claim? - [x] Proof of defect, defect existence, causation of injury, and proper use. - [ ] Proof of financial standing. - [ ] Proof of initial purchase. - [ ] Proof of legal representation. > **Explanation:** A plaintiff must prove that the product was defective, the defect existed when it left the manufacturer’s control, the defect caused the injury, and they were using the product as intended. ### What type of defect occurs during the production process? - [ ] Design defect - [x] Manufacturing defect - [ ] Marketing defect - [ ] Functionality defect > **Explanation:** Manufacturing defects happen during the production phase, indicating an issue in making the product according to its original design. ### What type of defect involves inadequate instructions or warnings? - [ ] Design defect - [ ] Manufacturing defect - [x] Marketing defect - [ ] Innovation defect > **Explanation:** Marketing defects pertain to improper labeling, warnings, or instructions that fail to make consumers aware of potential risks. ### Can used product sellers be held liable for product liability? - [ ] No, only new product sellers. - [x] Yes, if the defect causes injury. - [ ] Only if a product is over ten years old. - [ ] Used product sellers are always exempt. > **Explanation:** Sellers of used products can be held liable if a defect causes injury, depending on the defect's nature and the seller’s awareness. ### What is warranty in the context of product liability? - [ ] A recall notice. - [ ] A sales promotion. - [x] A guarantee about the product's condition. - [ ] A legal disclaimer. > **Explanation:** A warranty is a seller's promise regarding a product’s condition, and breaching this promise can result in liability. ### What legal field primarily governs product liability? - [ ] Criminal Law - [x] Tort Law - [ ] Contract Law - [ ] Property Law > **Explanation:** Product liability is primarily governed by tort law, which addresses civil wrongs and provides remedies for those harmed by defective products.

Keep exploring and deepening your understanding of product liability to protect and advocate for consumers’ safety effectively!