RMI-4420 Lecture Notes - Lecture 9: Strict Liability, Product Liability, Implied Warranty
28 Oct 2018
School
Course
Professor
- History of Strict Liability
o Definition
▪ Defendants are held liable for harm irrespective of fault
o Liability then expanded into abnormally dangerous activities and then to product
liability
- Restatement of Torts 402A and Doctrinal Rules
o One who sells any product in a defective condition unreasonably dangerous to
the user or 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:
▪ The seller is engaged in the business of selling such a product, and
▪ It is expected to and does reach the user or consumer without substantial
change in the condition in which it is sold
o Plaintiff must prove
▪ Product was defective
▪ Defect caused the product to be unreasonably dangerous
▪ Product has not been changed or modified by plaintiff
▪ Plaintiff suffered damage using the product
o Strict liability is imposed on manufacturers and designers of goods
- Reasons for Strict Liability
o Hoven v. Kelbe
o It is the seller who creates the risk
o The consumer relies on the skill, care, and reputation of the seller and on the
apparent safety of the product
o Seller is in a better position to bear the loss caused by defects and to distribute
the costs of the risks created by sale of defective product
o Burden of proof on a purchaser of goods may be difficult
o Promotes the public interest in the protection of human life, health and safety
- 3 Types of Product Defects
o Manufacturing Defect
▪ The product does not correspond with the original design
o Design Defect
▪ The product corresponds to the design, but the design and faulty and
injury results from the design defect
o Failure to Warn
▪ Product is defective in neither design nor manufacture, but poses some
inherent danger which the manufacturer has failed to provide adequate
warning
- Market Share Liability
o Imposes liability upon all parties in cases where a plaintiff cannot prove which
manufacturer produces the defective product or cannot prove which distributor
supplied the defective product which caused the injuries
- Economic Loss Rule
o A plaintiff cannot recover economic losses if a plaintiff has not suffered any
personal injury or property damage
Document Summary
History of strict liability: definition, defendants are held liable for harm irrespective of fault, liability then expanded into abnormally dangerous activities and then to product liability. Reasons for strict liability: hoven v. kelbe. Imposes liability upon all parties in cases where a plaintiff cannot prove which manufacturer produces the defective product or cannot prove which distributor supplied the defective product which caused the injuries. Economic loss rule: a plaintiff cannot recover economic losses if a plaintiff has not suffered any personal injury or property damage. Express warranties: an explicit promise or guaranty by the seller that a good will have certain qualities, examples, affirmation of fact or promise, description of goods, samples and models, facts and opinions. Warranties implied warranty of merchantability: every sale or lease of goods made by a merchant who deals in goods of the kind sold or leased automatically creates this implied warranty.
