Exam 7: Strict Liability and Product Liability

The manufacturer of a product may incur liability when a defect causes injury to a user but not when the defect causes property damage to a bystander.

Insulate Inc. makes and sells fire-retardant building materials. In a product liability suit against Insulate, a court would use a risk-utility analysis of the company's product as designed to determine whether

Some courts do not allow assumption of risk as a defense to a strict product liability claim because the theory focuses on the nature of a product, not the plaintiff's conduct.

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 bring a product liability lawsuit on the ground of misrepresentation, the plaintiff must not have relied on the misrepresentation.

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

Stan, an air conditioning and heating technician, files suit against Temp-Set Corporation, alleging that its thermostats are unreasonably dangerous due to the possibility of electrical shock while being installed. Temp-Set's best defense is most likely

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

Do-It-Rite Inc. makes and markets tools. Evan uses a Do-It-Rite power screwdriver to scrape grout-a purpose for which it was not intended-and is injured when the tool slips. Evan files a product liability suit against the maker. The defendant's best defense is most likely

Cold Play Corporation makes snowmobiles. Dale is injured when a defect unexpectedly accelerates the Cold Play vehicle he is driving, and he is thrown off. Esty, a hiker standing in the path of the unmanned vehicle, is struck and injured. In a suit based on strict product liability, Cold Play may be liable to

Chem Company and Dura Plastics Inc. make and distribute a certain toxic chemical that is discovered in the water supply of the county in which their plants are located. In a product liability suit against both makers, market-share liability may be imposed on

Under the doctrine of strict liability, a defendant's liability depends on privity of contract.

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

The doctrine of strict liability applies to sellers of goods, including wholesalers.

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

Cultivator Inc. designs and makes tractors, balers, and other farm equipment. In a product liability suit based on negligence, Cultivator could be liable for failing to exercise due care with respect to all of the following except

A product will be considered defective when the omission of reasonable warnings renders the product not reasonably safe.

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.

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?

For cause in fact to become a relevant issue in a product liability suit, a plaintiff must first establish proximate cause.