Exam 6: Product Liability

Liability is imposed on a manufacturer for a manufacturing defect only when the manufacturer's quality control efforts were "reasonable."

Steps & Rungs Inc. makes ladders. Ty discovers that his Steps & Rungs ladder is defective and sues the maker for product liability based on strict liability. To win, Ty must show that

To maintain an action in strict product liability, the plaintiff must show why and how the product became defective.

Product misuse is recognized as a defense to a claim for product liability only when the particular misuse was reasonably foreseeable.

Overland Corporation makes trucks. The brakes on Ned's Overland truck malfunction, but he continues to drive it. Unable to slow down, the truck crashes through a guardrail and careens off the road. In Ned's product liability suit against Overland, the defendant can assert the defense of

Motor Corporation (MC) makes cars and trucks. National Sales Company sells all MC vehicles. Open Road Inc. leases only the cars. Under product liability laws, liability for injuries or damage caused by an MC vehicle may be imposed on

Airsoft, Inc. makes toys. Airsoft intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Bing buys an Airsoft product and suffers an injury. Airsoft is most likely liable for

Epsilon Corporation makes scientific instruments that are subject to extensive government regulation and undergo a rigorous premarket approval process. In a design defect product liability suit against Epsilon by a party allegedly injured by one of the devices, the company can most successfully raise the defense of

Fit Corporation makes running shoes. Gaby, a marathoner, files a product liability suit against Fit, alleging a design defect. In deciding whether to hold the company liable, the court may consider an alternative design's

Meg is shopping in Nate's Hardware Store when a nail gun in use by Ovid, one of the store's employees, fires without warning and hits Meg in the leg. Nate checks the gun and discovers that it was assembled improperly. Meg files a suit against Power Tools Inc., the maker of the gun, on the ground of strict product liability. What are the elements for an action based on strict product liability? In whose favor is the court likely to rule and why?

EquiMeds Company and GenDrugs Inc. make and distribute prescription drugs. In a product-liability suit against both parties, the court is most likely to impose market-share liability if it cannot be proved which of the parties

Courts apply a "reasonableness" test to determine if a warning adequately alerts consumers to a product's risks.

Etta, who is obese, files a product liability suit against Fast Meal Corporation, alleging that the company's food products are unhealthy because, as Etta knows, the products contain high levels of cholesterol and saturated fat. Fast Meal can most successfully assert the defense of

A defendant may be able to limit liability for injuries caused by a defective product by showing that a plaintiff's negligence contributed to the injuries.

Bounce Company makes trampolines and other gym equipment. Chet files a product liability suit against Bounce, alleging a warning defect in one of its products. In deciding whether to hold Bounce liable, the court may consider that a manufacturer has no duty to warn about risks that are

Grill Time Inc. makes commercial cooking appliances, including a grill in use by Haute Cuisine Food Cart. Inez, a Haute employee, is injured when the grill malfunctions. If the injury occurred as a result of a misrepresentation about the product, Grill Time is most likely liable for

Sail-Away Corporation makes sailboards, which are distributed by Tropical Marketing Company to UV Sports Stores Inc., which sells them to consumers. Wen is injured while using a Sail-Away board that he bought from UV Sports. In a product liability suit based on strict liability, Wen may recover from

Manufacturers are commonly held liable when their negligence causes their products' users to be injured.

A defective product is an unreasonably dangerous product when it is dangerous beyond the expectation of the ordinary consumer.

In a product liability suit based on negligence, the plaintiff must show that the defendant's conduct was the "cause in fact" of an injury.