LGS 200 Lecture Notes - Lecture 13: I.R.S. Records, Operating Expense, Product Defect
Document Summary
Doctrine: a person who engages in certain activities can be held responsible for any harm that results from other even if the person used utmost care. Product liability -when product defects cause injury or property damage to consumers, users or bystanders. Abnormally dangerous activities - those who involved high risk of serious harm that cannot be completely guarded (storing explosives) The manufacturer can better bear the cost of injury because it can spread the cost throughout society by increasing the prices of its goods. The manufacturer is making a profit from its activities and therefore should bear the cost of injury as an operating expense. May be based on theories of negligence, misrepresentation, strict liability and warranties. Placing adequate warnings on the label to inform the user of dangers of which an ordinary person might not be aware. Inspecting and testing any purchased components used in the product.