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Ch 13: Strict Liability and Product Liability (Strict Liability…
Ch 13: Strict Liability and Product Liability
Strict Liability
DEF: No Fault liability, defendant did activity considered abnormally dangerous; therefore defendant is automatically liable if harm results
Abnormally Dangerous Activities - the activity:
Involves a potential degree of harm that involves a serious nature
Involves a high degree of risk that cannot be completely guarded against in reasonable care
Not commonly performed
Storing or blasting dynamite, even if done with reasonable care = they are responsible for harm
Other applications of Strict Liability
Keeping Wild Animals (Lions, Tigers, Bears)
Keeping Domestic Animals (Dogs - not always liable unless we know/should know that they are dangerous)
Sexual Harassment (Quid pro quo, hostile work environment)
If you keep something on your land that likely to cause mischief, if it escapes you are liable if the mischief happens
Pipe burst and flooded your land, they are liable
Product Liability
Based on NEGLIGENCE - if a manufacturer fails to exercise "due care" to make a product safe; a person who is injured by the product may sue the manufacturer for negligence
No "privity" requirement - it doesn't matter if it's in a private contract
Plaintiff does NOT have to prove the specific defect that caused the injury
Product Liability Based on MISREPRESENTATION (Fraud)
Fraudulent Misrepresentation
Misrepresentation of a material fact concerning quality, nature, or approximate use of the product is made knowingly or with reckless disregard for the truth
As a result of the fraud, injury occurs
SAME AS CH. 12 INTENTIONAL TORTS :star:
Strict Product Liability
Public Policy Justifications
Consumers should be protected against unsafe products;
Manufactures should NOT escape liability for defective products just because not in privity with injured person;
-AND- manufacturers and sellers are in a better position to bear the costs associated with injuries caused by their products
Requirements for Strict Product Liability - 402A of the Restatement 2d of Torts
MEMORIZE ALL 6
(1) The product must be in a defective condition when the defendant sells it
(2) The defendant must
normally
be engaged in the business of selling (or distributing) the product
(3) The product must be
unreasonably dangerous
to the user or consumer because of a defective condition
The product was dangerous beyond the expectation of the ordinary consumer -OR-
A less dangerous (safe) alternative design (SAD) was economically feasible, but the manufacturer failed to produce it
(4) The Plaintiff must incur physical harm to self or property by use or consumption of the product
(5) The
defective
condition must be the proximate cause of injury
Manufacturing Defects
A product departs from its intended design even though all possible care was exercised in the preparation and marketing of the product
Design Defects
The foreseeable risk of harm posed by the product could have been reduced or avoided by the adoption of a reasonable alternative design
Warning Defects
The foreseeable risk of harm posed by the product could have been reduced or avoided by reasonable instructions or better warnings
Obvious Risk
No duty to warn about risks that are obvious or commonly known (knives or elastic bands)
Foreseeable Misuse
Seller MUST warn!
(6) The goods must not have been substantially changed from the time sold to the time of injury
Market Share Liability
If the Plaintiff cannot prove which manufacturer produced the particular product that caused harm, then all manufacturers are liable in proportion to its share of the market
Defense to Product Liability
Assumption of the Risk
(1) Product misuse
Comparative Negligence
Plaintiff's misuse of the product contributed to his or her injuries
Does not completely absolve defendant of liability
A car had issues and when the plaintiff worked on it without a hard hat it fell and gave him a head injury, needed to wear hard hat = comparative negligence (car company still at fault)
Product is used in a way not intended by the manufacturer (OxyCotin)
If the use is reasonably foreseeable, the manufacturer must guard against it
DEF: Plaintiff knows risk of product and uses it anyways
(2) Ignoring a product recal
Commonly Known Dangers
No Warning Necessary (same as Obvious Risk)
Anyone who is an adult should know (elastic bands)
Statute of Limitations and Statue of Repose
Helps companies avoid liability for products they make past a certain period of time
SoL: Time limit of filing a lawsuit (2 years after discovery of defect)
SoR: From the date of manufacturing, there is 10 years that you can claim a default
Knowledgeable User
Particular type of user with a particular type of knowledge
People who eat fast food know that fast food is unhealthy