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