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AIC32 ch6

Terms in this set (16)

Products liability
A manufacturers or sells liability for harm suffered by a buyer, user or bystander as a result of a product that has a dangerous manufacturing defect or design defect or that is not accompanied by a warning of an inherent hidden danger.
Negligence in products liability cases
Negligent design, labeling and packaging, providing warnings or instructions, inspections and testing, or assembly.
Minimum characteristics for a warning label
It should be legible, printed in a way that it catches the users attention, understandable to the average user and should convey the message of danger.
Retailers Negligence
Failure to inspect product, to warn of dangers of product, to properly assemble product, negligent sales or sales in violation of a statute.
Sales in Violation of a statute
Seller presented the product as free from defects, seller has not grounds on which to base the representation that the product is not defective seller knows that a significant danger exists if there is a defect, purchaser relies on representation of seller, product contains a defect that harms the user.
Defenses for product liability claims
No defect in the product, misuse or alteration of the product by the claimant, duty owed to claimant was not breached, no proximate cause of action to injury, unforseeability of harm, intervening cause of harm, acts of god, contributory/comparative negligence on the part of the product user, assumption of risk by the product user, statutes of limitations.
Implied warranty
An obligation that the courts impose on a seller to warrant certain facts about a product even though not expressly stated by the seller.
Express warranty
An explicit statement about a product by the seller that the buyer or other user may rely on and that provides a remedy in the event the product does not perform as claimed.
Breach of warranty
Source of liability based on laws that protect consumers who purchase products that do not perform as expected.
Implied warranty of title
An implied promise in a contract for the sale of goods that the seller has legal ownership of goods and has no knowledge of any security interest or other lien on the goods other than those disclosed to the buyer.
Implied warranty of merchantability
an implied warranty that a product is fit for the ordinary purpose for which it is used.
Implied warranty of fitness for a particular purpose
An implied warranty that a product is fit for a particular purpose applies if the seller knows about the buyers purpose for the product.
Seller
Any party in the chain of selling, including suppliers, manufacturers distributors and retailers.
State of the art defense
a defense used when a product conformed to industry standards at the time it was designed or built.
Indemnification
The process of restoring an individual or organization to a pre-loss financial condition.
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