Table Of Content

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.