Florida A&M University
School of Business and Industry
The Ethical and Legal Issues of Product Liability
April 18, 2015
BUL 5323: Legal Issues and Environment
Product liability refers to a manufacturer or seller being held liable for placing a defective product into the hands of a consumer. Responsibility for a product defect that causes injury lies with all sellers of the product who are in the distribution chain. This includes the manufacturer of component parts (at the top of the chain), an assembling manufacturer, the wholesaler, and the retail store owner (at the bottom of the chain). Products containing inherent defects that cause harm to a consumer of the product, or someone to whom the product was loaned, given, etc., are the subjects of products liability suits. While products are generally thought of as tangible personal property, products liability has stretched that definition to include intangibles (gas), naturals (pets), real estate (house), and writings (navigational charts). Products liability claims can be based on negligence, strict liability, or breach of warranty of fitness depending on the jurisdiction within which the claim is based. Many states have enacted comprehensive products liability statutes. These statutory provisions can be very diverse such that the United States Department of Commerce has promulgated a Model Uniform Products Liability Act (MUPLA) for voluntary use by the states. There is no federal products liability law. In any jurisdiction one must prove that the product is defective. There are three types of product defects that incur liability in manufacturers and suppliers: design defects, manufacturing defects, and defects in marketing. Design defects are inherent; they exist before the product is manufactured. While the item might serve its purpose well, it can be unreasonably dangerous to use due to a design flaw. Present in a product from the beginning, even before it is manufactured, in that something in the design of the product is inherently unsafe. On the other hand, manufacturing defects occur during the construction or production of the item. Only a few out of many products of the same type are flawed in this case. Those that occur in the course of a product's manufacture or assembly. Defects in marketing deal with improper instructions and failures to warn consumers of latent dangers in the product. Flaws in the way a product is marketed, such as improper labeling, insufficient instructions, or inadequate safety warnings. Products Liability is generally considered a strict liability offense. Strict liability wrongs do not depend on the degree of carefulness by the defendant. Translated to products liability terms, a defendant is liable when it is shown that the product is defective. It is irrelevant whether the manufacturer or supplier exercised great care; if there is a defect in the product that causes harm, he or she will be liable for it. The law of products liability is found mainly in common law (state judge-made law) and in the Uniform Commercial Code. Article 2 of the UCC deals with the sales of goods and it has been adopted by most states. In it, the most important products liability sections are the implied and express warranties of merchantability in the sales of goods §§ 2-314 and 2-315. Products liability is derived mainly from Torts law. Defective or dangerous products are the cause of thousands of injuries every year in the U.S. "Product liability law," the legal rules concerning who is responsible for defective or dangerous products, is different from ordinary injury law, and this set of rules sometimes makes it easier for an injured person to recover damages.
Who is Responsible?
The doctrine known as "res ipsa loquitur" shifts the burden of proof in some product liability cases to the defendant(s). Translated, this Latin term means "the thing speaks for itself," and indicates that the defect at issue...
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