Ch 06 notes - Strict Liability & Product Liability

Ch 06 notes - Strict Liability & Product Liability...

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Business Law The defendant must be at fault for causing the plaintiff’s injuries. 1. Negligence a. Plaintiff must prove that the defendant breached a duty of due care to the plaintiff and thereby caused injuries. b. Only a party who was actually negligent is liable to the plaintiff. 2. Misrepresentation ( Fraud ) a. Seller or lessor has conducted one or more of the following: i. Affirmatively misrepresent the quality of a product ii. Conceal a defect in the product b. Not often used because most reputable manufacturers, sellers, & lessors do not intentionally misrepresent the quality of their products c. Recovery: Limited to persons who were injured because they relied on the misrepresentation. Strict Liability Greenman v. Yuba Power Products, Inc. 95 : Adoption of the doctrine of strict liability in tort as a basis for product liability actions. 1. Liability Without Fault a. Defendant can be found strictly liable even if he/she has exercised all possible care b. Only applies to the following: i. Sellers or lessors of products engaged in the business of selling & leasing ii. Products, not services iii. In hybrid transactions involving both, the dominant element determines Example : In a medical operation of blood transfusion, the operation is the dominant element, and strict liability would not apply. 2. All in the Chain of Distribution are Liable a. Chain of Distribution : All manufacturers, distributors, wholesalers, retailers, lessors, & subcomponent manufacturers involved in a transaction are strictly liable for the injuries caused by that product. Manufacturer Distributor Wholesaler Lessor, Customer, Seller Lender Buyer Both the Lender & the Buyer have the right to sue anyone in the chain of production before the product reached you. Retailer Vertical Privity Horizontal Privity 1
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Business Law b. A defendant who has not been negligent but who is made to pay a strict liability judgment can bring a separate action against the negligent party in the chain of distribution to recover its losses. c.
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Ch 06 notes - Strict Liability & Product Liability...

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