Bus Law Sec 2

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Created by:

SFLisa  on March 19, 2009

Subjects:

business law

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Bus Law Sec 2

Torts Relative to Products
Strict Liability & Product Liability
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Definitions

Torts Relative to Products Strict Liability & Product Liability
Cause of Action Theory of law the plaintiff uses to sue
Negligence Defendant breached a duty of care that caused the plaintiff harm. Requires the defendant be at fault.
Strict Liability Tort doctrine without fault determined. Covers products, not services. Absolute responsibility w/out necessity of finding fault.
Vicarious Liability Strict liability pertaining to the relationship b/t you and someone/thing you are responsible for: employer/employee, pet owner/pet, Hertz Rent-a-car/lessee
Parties to S/L, P/LTort Plaintiff (injured party); Defendant (manufacturers, wholesalers, retailers. All involved in distribution of product from development to consumer purchase.
Manufacturer Defect Cause of Action defect that occurs when the manufacturer fails to (1) properly assemble a product, (2) properly test a product, or (3) adequately check the quality of the product.
Design Defect Cause of Action defect that occurs when a product is improperly designed
Packaging Defect Cause of Action defect that occurs when a product has been placed in packaging that is insuffieciently tamperproof
Foreign Substance Cause of Action food/drink issues
Failure to Warn Cause of Action defect that occurs when a manufacturer does not place a warning on the packaging of products that could cause injury if the danger is unknown
Failure to Provide adequate instructions Cause of Action defect that occurs when a manufacturer does not provide detailed directions for safe assembly and use of a product
Defenses for S/L & P/L Misuse, Assumption of Risk, Material Alterations, Frolic & Detour
Misuse of Product defense defense tht relieves a seller of liability if the user abnormally misused the product. Products must be designed to protect against foreseeable misuse
Assumption of Risk defense in order to apply, the defendant must prove (1) the plaintiff knew & appreciated the risk and (2) the plaintiff's voluntarily assumed the risk. (smoking after reading warnings)
Material Alterations defense Consumer changes the product or the instructions of use to meet their needs, which alters the product in some way
Frolic & Detour defense used primarily when an employer is attempting to prove the employee was not on shift therefore not liable for employees actions. (cop rapes woman)
Horn v. Gen Motors Design defect in steering wheel cover
Coca-Cola & mouse in can foreign substance issue; all parties who came into contact w/ product are responsible
Trade Secrets formulas, patterns, data, customer lists, other business secrets. A catch-all if other steps not taken. States have unfair competition laws allowing the trade secret owner to bring suit; Federal crime also
Trade Secret lawsuit elements defendant must have obtained secret through unlawful means (theft, bribery, espionage)
Burke v. Almaden Vineyards (champagne case) Cork under pressure hits woman in eye. failure to warn cause of action
Federal Economic Espionage Act of 1996 makes it a Federal crime to steal another's trade secrets
Remedy for infringement upon intellectual property Recover profits made by offender; recover damages; obtain injunction prohibiting offender from divulging secrets
Fair Use Doctrine permits certain limited use of a copyright for educational, teaching, quoting, review, parody
Roy Orboson v. 2 Live Crew Parody; no copyright infringement; no remedy
Elements of contract offer, acceptance, consideration
Bilateral Contract a promise for a promise
Unilateral contract a promise for an act

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