Product Liability

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Transcript Product Liability

Ms. Smith
Under product liability law,
someone who is injured from
a product’s unsafe or
defective condition may
recover damages.
 Manufacturers, sellers, and
suppliers can be held responsible.
You don’t have to prove
negligence in a case of
product liability.
Under strict liability,
manufacturers or suppliers are
responsible for selling goods
that are unreasonably
The product was unreasonably dangerous to the
The defective condition was the cause of the injury
or damage.
The defective condition existed when the product
left the hands of the manufacturer or seller.
The consumer suffered physical harm or property
damage as a result of using the product.
 Consumer Product Safety Act
 Food, Drug, and Cosmetics Act
Protects you from unreasonable risk of injury while
using consumer products.
Defects in products are divided into 3 categories:
 Manufacturing defects (ex. a ladder with missing rivets)
 Poor design (ex. a toy with small parts that can be swallowed)
 Inadequate instructions and warnings about the safe use of the
product (ex. a chainsaw that does not include instructions)
Most important federal law regarding product liability.
Requires that packaged drugs bear the name and address of
the manufacturer and a statement of the quantity or weight of
the contents; as well as cautions.
 The act prescribes criminal penalties for firms or individuals who violate
this law.
 Federal government has the right to remove from market or:
▪ Unusually high taxes
▪ Label & Packaging
▪ Outright prohibition
If goods are manufactured and sold only within the
boundaries of a state, the federal government has no
control over the goods.
For this reason, many states have enacted their own
product liability laws, which apply to intrastate sales (sales
within a state).
Protect citizens from consumer fraud,
blanket the state with consumer
education, and make our operations
consumer-friendly to the public when
they contact us.
Automobile Leasing
Businesses We Regulate
Charities & Fundraisers
Halal Food
Home Improvement Contractors
Identity Theft
Kosher Food
Lemon Law
 New Car
 Used Car
 Wheelchair
Public Movers & Warehousemen
Nongovernment agency that
hears consumer complaints at
the local and state levels.