Products Liability

Tort Liability

Negligence

Strict Liability

Restatement of Torts 402 A

Tort Liability

Negligence

a. Duty

b. Breach of Duty

c. Proximate Cause

d. Injury or damage

Strict Liability

Restatement of Torts : Section 402A

Imposes liability on Merchant sellers for both

personal and property damage resulting for

selling a product in a defective condition

Strict Liability402A

1. One who sells any product in a defective condition unreasonably dangerous to the user of consumer or to his property is subject to liability for physical harm thereby caused to the ultimate user or consumer, or to his property, if (a) the seller is engaged in the business of selling such a product, and (b) it is expected to and does reach the user or consumer without substantial change in the condition in which it is sold.

Strict Liability402A

2. The rule state in Subsection (1) applies although (a) the seller has exercised all possible care in the preparation and sale of his product, and (b) the user or consumer has not bought the product from or entered into any contractual relation with the seller.

Strict Liability 402ADefective Condition

Manufacturing Defect:

Product fails to meet manufacturing specifications

Design Defect:

Product manufactured correctly, but dangerous due to inadequate design

Failure to Warn: (a) adequate warning of Danger (b) appropriate directions (c) Proper packaging

Unreasonably Dangerous

Product is unreasonably dangerous if it

contains a danger beyond that which the

ordinary consumer, who purchases the

product with common knowledge of its

characteristics, would contemplate.

Food Products

Natural substance test

If substance in food is natural to the product than no liability

Reasonable expectation test

Liability based on reasonable expectation of finding substance in the product.

Broken tooth due to cherry pit in cherry pie

Entrustment Doctrine

If the owner of goods entrusts them to a merchant who deals in goods of the kind sold and the merchant sells them in the ordinary course of business to a bona fide purchaser for value the purchaser gets good title even though the merchant did not have good title.

Transfer of Voidable Title

A seller with voidable title transfers a good title to good faith purchasers for value.