Final presentation bus law

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business law class

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1. 2. What is Product Liability - Theories and Types Case study Edward vs. Home Depot, Black & Decker, Barbara ,Winetco - Real life Linked Case - Other Liability Concepts Table Of Content 3. Introduction: 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 4. 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 its 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 of liability 5. Types of liability Manufacturing Defect Design Defective Marketing Def ect 6. Product Liability Cases 7. Case 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 8. 1. Was the Black & Decker product defective? 2. Was the design unsafe? 3. Was there a failure to warn of the potential hazard? Edward vs. Home Depot, Barbara Black & Decker & Winteco 9. If the injures were caused by negligence? If so he 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 10. Breach of Warranty Warranties are statements by a manufacturer or seller concerning a product during a commercial transaction 11. Primary Theories Negligence Misrepresentation Strict Liability 12. Negligence 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 13. Strict Liability Is the standard for liability which may exist in either a criminal or civil context. Source: Wikipedia 14. Related Case Studies Hernandez vs. Arizona August 10, 1995 Attempt to blame the consumption of alcohol, but is too broad. Liebeck v. McDonald's Restaurants 1994 McDonalds responsibility to not only inform consumers of the hot product but how hot The plaintiff suffered third degree burns. 15. Debate 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 16. Law Pertaining to Product Liability 17. Liability 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. 18. 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. 19. Liability Remedies Four different types of damages from a products liability case: Compensatory damages Pain and suffering Punitive damages Loss of consortium 20. Consumer Safety Commission 21. Consumer 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. 22. Product 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 23. Consumer 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. 24. 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 25. Questions 26. References 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.