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What is Product Liability- Theories and TypesCase study Edward vs. Home Depot, Black & Decker, Barbara ,Winetco - Real life Linked Case- Other Liability Concepts
Introduction: Product LiabilityIntroduction: Product Liability
• Defined as the responsibility of a manufacture or vendor of goods to compensate for injury caused by defective merchandise that it has provided for user.
• Occurs when a cause of action is filed against a
manufacture, seller or person who designed product, when an individual is harmed.
Source: Legal Information Institute
Negligence- Referred to when their has been lack of reasonable care either during design producing and an unsafe product, assembly or production Misrepresentation- Being lead by the false pretense of a products safety & not by it’s hazardous potential Strict Liability – Not having to proof fault only that the product was defective, injured you and your injury was a result of the defect
Primary Theories Primary Theories of liability
Types of liabilityTypes of liability
Manufacturing Defect
Design Defective
Marketing Defect
Product Liability Cases
Case StudyCase Study
Ben purchases a Black and Decker electric saw at Home Depot. Barbara borrows the saw from Ben, and Edward, a neighbor across the street, is seriously injured when the blade of the saw flies off during use and hits him in the arm. Edward files a lawsuit for negligence against
1) Home Depot 2) Black and Decker 3) Barbara 4) Winetco, the maker of the blade used by Black and Decker
Edward vs. Home Depot, Black & Decker, Barbara ,Winetco
1. Was the Black & Decker product 1. Was the Black & Decker product defective?defective?
2. Was the design unsafe? 2. Was the design unsafe?
3. Was there a failure to warn of the 3. Was there a failure to warn of the potential hazard? potential hazard?
Edward vs. Home Depot, BarbaraEdward vs. Home Depot, Barbara Black & Decker & WintecoBlack & Decker & Winteco
If the injures were caused by negligence? If so he If the injures were caused by negligence? If so he will need to be prepared to do the following:will need to be prepared to do the following:
•Proof the product really did malfunction• Proof product was being used as the manufacture or seller intended • He was injured as a result
Edward Needs Consider
Breach of WarrantyBreach of Warranty
Warranties are statements by a manufacturer or seller concerning a product during a commercial transaction
Primary Theories Primary Theories
• Negligence• Misrepresentation• Strict Liability
NegligenceNegligence
• A basic negligence claim consists of proof of the following: 1. A duty owed. 2. A breach of that duty. 3. The breach was the cause in fact of the plaintiff's injury. 4. The breach proximately caused the plaintiff's injury. 5. Plaintiff suffered actual quantifiable injury.
Source: Wikipedia
Strict LiabilityStrict Liability
Is the standard for liability which may exist in either a criminal or civil context.
Source: Wikipedia
Related Case StudiesRelated Case Studies
Hernandez vs. Arizona– August 10, 1995– Attempt to blame the consumption of alcohol, but is
too broad.
Liebeck v. McDonald's RestaurantsLiebeck v. McDonald's Restaurants
– 19941994– McDonald’s responsibility to not only inform
consumers of the hot product but how hot– The plaintiff suffered third degree burns.
Debate for Strict LiabilityDebate for Strict Liability
• Strict products liability requires manufacturers to evaluate the full costs of their products.
• Provides a mechanism for ensuring that a product's absolute good outweighs its absolute harm.
• Between two parties who are not negligent: manufacturer and consumer
• Seeks to diminish the impact of information
asymmetry between manufacturers and consumers
Law Pertaining to Product Liability
Liability TortLiability Tort
Elements in determining the liability for negligence
– The plaintiff was owed a duty of care.– There was dereliction or breach of that duty.– The tort teaser directly caused the injury.– The plaintiff suffered damage as a result of that breach.– The damage was not too remote.
Tort :Tort :
Wrong act! Causing one party to suffer a property loss or injury
• Home depot- – retail store who sold item – may still be liable for injuries
• Black & Decker/ Winetco– Designed & manufacturer
• Defendant Barbara - – Can be unintentional tort she was negligent in lending the saw without
perhaps knowing if he new how to use the product.
Liability RemediesLiability Remedies
Four different types of damages from a products liability case:
• Compensatory damages • Pain and suffering • Punitive damages • Loss of consortium
Consumer Safety Commission
Consumer ProtectionConsumer Protection
Consumer protection laws for product defects are: lemon laws which became widespread because automobiles are often an American citizen's second-largest investment after buying a home.
Product RecallProduct Recall
• The recall is an effort to limit liability for corporate negligence and to improve or avoid damage to publicity
• The FDA is responsible for protecting and promoting public health through the regulation and supervision
Consumer ProtectionConsumer Protection
U.S. Consumer Product Safety Commission
• The U.S. Consumer Product Safety Commission is charged with protecting the public from unreasonable risks of injury or death from thousands of types of consumer products under the agency's jurisdiction.
Continuing the Case Continuing the Case
Provide the Lawyer with:– The Product Itself – Information about where you purchased it – Any manuals or other material that came with the product – Pictures of the product and where the injury occurred, if possible.– Copies of medical records – Time that was missed from work – Receipts for any property damage
– Other Information needed: • Details of what occurred • What was said by any witnesses • Injuries • Appointments resulting from the accident and distances traveled • Time spent • Effects of the injuries on your family
Questions
ReferencesReferences
• www.law.cornell.edu/wex/products_liability• http://en.wikipedia.org/wiki/Product_liability • http://www.cpsc.gov/• Owen, avid G. Products Liability In A Nutshell. West
Group, 2008.• Henderson, ames A., and Aaron D. Twerski. Products
Liability, Problems And Process. Aspen Law & Business, 2008.