Products Liability
Products liability holds manufacturers and sellers liable for defective products that cause injury, through negligence, strict liability, or breach of warranty theories.
Overview
Products liability is the area of tort law governing liability for injuries caused by defective products. Plaintiffs may pursue claims under three theories: negligence, strict liability, and breach of warranty.
Under strict products liability, as established in Greenman v. Yuba Power Products and codified in Restatement (Second) § 402A, a manufacturer or seller who places a defective product into the stream of commerce is liable for injuries caused by the defect, regardless of fault. Three types of defects can give rise to liability: manufacturing defects (the product departs from its intended design), design defects (the product's design is inherently dangerous), and warning defects (inadequate instructions or failure to warn of known risks).
For design defects, courts apply two principal tests. The consumer expectations test asks whether the product failed to perform as safely as an ordinary consumer would expect. The risk-utility test (adopted in Barker v. Lull Engineering) asks whether the risks of the design outweigh its benefits, and may shift the burden to the manufacturer to prove the design's benefits outweigh its risks.
The evolution of products liability from privity-based contract claims (Winterbottom v. Wright) through MacPherson v. Buick Motor Co. (eliminating the privity requirement) to Greenman and the modern strict liability regime is one of the most important developments in American tort law.
Key Takeaway
Products liability can be pursued under three theories: strict liability (no fault needed), negligence (must prove manufacturer's carelessness), and warranty (breach of express or implied warranty).
Exam Tip
Identify the type of defect first (manufacturing, design, or warning). For design defects, know both the consumer expectations and risk-utility tests. Remember that all sellers in the chain of distribution can be liable under strict products liability.
Landmark Cases (11)
Frequently Asked Questions
What are the three types of product defects?
Manufacturing defects (the product deviates from its intended design), design defects (the product's design makes it unreasonably dangerous), and warning defects (failure to provide adequate warnings or instructions about known risks).
What is the consumer expectations test vs. the risk-utility test?
The consumer expectations test asks if the product performed as safely as an ordinary consumer would expect. The risk-utility test weighs the product's risks against its benefits. Some jurisdictions use one or the other; some use both depending on the context.
Who can be held liable in a products liability case?
Under strict products liability, all commercial sellers in the chain of distribution can be liable, including manufacturers, distributors, wholesalers, and retailers. Casual sellers (garage sales) are typically excluded.
How did MacPherson v. Buick change products liability law?
MacPherson eliminated the privity requirement, allowing injured consumers to sue manufacturers directly even without a contractual relationship. This opened the door for modern products liability law by removing the artificial barrier of privity of contract.
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