BALW20150 Chapter Notes - Chapter 7: Product Liability, Product Defect, I.R.S. Records
2 Feb 2017
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Apply strict liability because of the extreme risk of the activity. Involve high risk of serious harm to persons or property that cannot be completely guarded against by the exercise of reasonable care. Ex. blasting or storing explosives, keeping wild animals. Liable for damages even if there is no fault: also applied to certain types of bailments when goods are transferred temporarily into the care of another. Product liability= manufacturers and sellers of products may incur when product defects cause injury or property damage to consumers, users, or bystanders: based on two factors: The manufacturer can better bear the cost of injury because it can spread the cost throughout society by increasing the prices of its goods. Does not require (cid:498)privity of contract(cid:499) refers to the relationship that. Privity is the reason that normally only the parties to a exists between the parties to a contract contract can enforce that contract.
