Prejudgment interest on money owed accrues from due

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Prejudgment Interest: on money owed accrues from due date not recovery date at trial. Non-pecuniary interest from date of notice of claim. Postjudgment Interest: varies by province; usually from date judgment rendered. STUDY 7 PRODUCTS LIABILITY AND ITS EFFECTS Ladder of Supply: Manufacturer * Manufacturer’s Agent * Distributor * Wholesaler * Retailer * Purchaser * Consumer/User. Any of these could be responsible for damages. Contract Theory (Privity of Contract): originally only parties to contract could sue; consumer could sue purchaser for instance; no ‘rung-jumping’. Contract: an agreement enforceable by law (including insurance); 2+ persons agree to do, or refrain from doing, some specific act. Tort Theory: now, can sue anyone on ladder of supply. McPherson v. Buick Motor Co. (1916): injured party sued manufacturer, Buick had defectively made car, dealer could not have been responsible. Buckley v. Mott (1920): powdered glass in chocolate bar. Donoghue v. Stevenson (1932): ginger beer with snail inside, purchaser gave to friend who drank it, can still sue manufacturer even if no contract exists. Dangerous Products: manufacturer has duty to purchaser and anyone else his product could damage. For objects of dangerous nature, manufacturer has heavy onus (Extended Duty of Care) which alleviates liability of others in ladder of supply. Manufacturer must give appropriate warnings on products, e.g. drugs. Burden of Proof: generally Plaintiff must prove negligence or res ipsa loquitur. Strict Liability applies for dangerous products or where defect is necessarily from the manufacturing process. Lambert v. Lastoplex Chemicals Co. (1972): dangerous products, weed killer, failure to warn of possible damages to adjacent crops. Product Defects: if manufacturer discovers defect in product (at any time), must warn consumers, & recalls. Rivtow Marine Ltd. v. Washington Iron Works (1973): failure to notify consumers of defect in crane. Allergic Reaction: some compounds that are safe for most people will produce allergic reactions in others; risk is more acceptable for beneficial drugs. Manufacturers must warn of possible allergic reactions on the label. Suit in Contract (Warranty): breach of contract of sale or warranty, product not fit for intended purpose. Can recover from seller (except brand name products) without proof of negligence (Strict Liability). Warranty available only to 1 buyer (Privity of Contract). Products Liability insurance does not cover deliberate actions of Insured. STUDY 8 STANDARD CGL POLICY
COMMERCIAL GENERAL LIABILITY (CGL) FORM: 2 parts (1) Declarations: · Named Insured: benefits, duties, obligations, address, operating premises address · Policy Period: usually annual · Insurance Limits: $ value in each of 5 Sections · Form of Business: legal nature of Named Insured · Business Description: type of business of Named Insured · Location of owned/rented/occupied premises; liability covered for all premises of Named Insured within territory limits · Classification: Insurer’s statistics., premium, claims · Minimum Premium: $ value, covers processing costs if insurance canceled

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