Transcript Document

8.1
Chapter 8
Product and
Service Liability
© 2003 by West Legal Studies in Business/A Division of Thomson Learning
Types of
Product Liability
Breach of
warranty
Negligence
Strict liability
Misrepresentation
8.2
How Long Does
Product Liability Last?
 Responsibilities seem endless
 Delayed manifestations
 Market share liability
8.3
8.4
Warranty Liability
1. Express liabilities
2. Implied warranty of
merchantability
3. Implied warranty of fitness for
a particular purpose
8.5
Negligence Liability
Elements of negligence:
 Plaintiff
must prove defendant had a
duty to exercise due care
 Seller
A
must minimize risks of injury
breach of duty must result
 Relationship
must exist between
injured party and one who breached
the duty
 Injury
is a legal injury
8.6
Strict Liability
 Based on neither fault nor
warranty provisions
 Manufacturer bears burden for
defective products
 Proving products unreasonably
dangerous is the burden of a
claimant
 Defenses to strict liability exist
8.7
Misrepresentation
 Characteristics of misrepresentation
It
is considered a tort
Contractual
limitations are not
applicable
Misrepresentation
must be material
 Fraud and misrepresentation on the
internet
Parties in Product
Liability Cases
 Plaintiffs
 Defendants
Manufacturers
Component
manufacturers
Wholesalers or distributors
Retailers
Franchisors
8.8
Let’s
Discuss
Liability of
Service Providers
Discuss the liability
involved for each of
the following
situations:
1.
Breach of warranty
2.
Negligence
3.
Strict liability
4.
Misrepresentation
5.
Internet service
providers
8.9
8.10
Defectiveness
 Defective designs
 Manufacturing defects
 Warning defects
 Establishing defectiveness
8.11
Affirmative Defenses
 Comparative and contributory
negligence
 Assumption of risk
 Product misuse
 Product safety regulations
 Food and drug safety and purity
 Motor vehicle safety
8.12
Administrative Remedies
 Warning labels and advertising
 Searches, seizures, forfeitures,
and condemnations
 Repair, refund, or replacement
 Regulatory noncompliance and
damage suit
 Regulatory compliance as due
care