One engaged in sellingdistributing defective products is liable for harm caused

One engaged in sellingdistributing defective products

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One engaged in selling/distributing defective products is liable for harm caused by defectManufacturing defect: product departs from intended designDesign defect: foreseeable risks of harm posed by product could’ve been reducedDefective warningDefenses to Strict Liability Product ActionoMisuseoMost court reject state of the art defense: issue isn’t what producers know at time, but that product is defectively dangerousLiability to bystandersoExtended liability if bystander is in need of greater protection from defective productsMarket share liabilityoDifficult to trace product to single manufactureroTheory of recovery according to which damages are apportioned among all manufacturers of a product based on market share at time of plaintiff’s cause of actionoAll defendants are tortfeasors; allegedly harmful products are identical and share same defects, plaintiff can’t identify defendant then manufacturers of area=defendantsService liability (negligence cases)
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oMalpractice: actions brought against professionalsAccountant’s LiabilityoPlaintiff must prove same negligent elementsoStrict: Ultramares Doctrine: accountant is only liable to those in privity of contract relationshipOnly that party can sueoMore liberal: accountants will be liable to limited class of intended users of information accountant’s have duty to client and anyone using the workoMost liberal: any foreseeable user of the work can sueCH. 20: The Employment Relationship Davis-Bacon Act: requires contractors to pay “prevailing wage” Fair Labor Standards Act: covers all employees engaged in interstate commerce or production of goods for interstate commerceoEmployers are supposed to display poser of “Employee Rights”oEstablishes minimum wageoWorkers working over 40 hr/week be paid at least 1.5x regular wageExempt: executives, administrative employees, professional employees, and outside salespersonsEmployers manipulate titles to get out of this requirementExecutive’s jobs are generally manual or routine labor but also superviseEmployees must earn at least minimum income before exemption oEmployers keep records of name, social, address, sex, hours, pay, dates, etc.Unemployment CompensationoFederal Unemployment Tax Act: provides unemployment compensation to qualified employees who lose jobs (not fired)Employers pay taxes toward Unemployment Insurance FundEligibility requirementsFired without cause or quit with compelling reasonConsolidated Budget Reconciliation Act of 1985 (COBRA)oEmployees who lose their jobs/hours reduced to where they don’t have eligibility to receive health care can continue receiving benefits under employer’s policyoMuch reduced premium for those laid off (18 months) unless fired for gross misconductWorkers Compensation LawsoCoverageProvides financial compensation to employees or dependents when covered employee of covered employer is injured on jobCannot sue company but do not have to prove faultEmployer pays premium based on accident frequency
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