Torts Product Liability

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1
Does Consumer Expectation and Risk-Utility have to be mutually exclusive.
No, most states have chosen different approaches:
(1) Permitting PLs to choose between consumer expectations and risk-utility;
(2) Permitting PLs to show defects using Consumer Expectations, then allowing DFs to rebut using Risk-Utility;
(3) Permitting Consumer Expectations only in appropriate cases, otherwise requiring Risk-Utility;
OR
(4) Rejecting Consumer Expectations completely and only allowing Risk-Utility to prove defects.
2
Traditional Common Law for Product Liability
Only the direct customer of a manufacturer could recover from that manufacturer for product-related injuries.

If the item was purchased by another in the chain of distribution, such as a retailer, the manufacturer would be free from responsibility.
3
Three Categories of Product Liability
(1) “manufacturing,”
(2) “design,”
(3) Invalid warnings
4
R2Torts§402A: Special Liability of Seller of Product for Physical Harm to User or Consumer (1965)
§402A: Establishes Strict Liability for a seller of a product whose defective condition makes the product unreasonably dangerous.
5
A product is defective when:
At the time of sale or distribution it contains:
(1) Manufacturing defect
(2) Defective in design
(3) Inadequate instructions or warnings.
6
Rule: Five Elements to Proving defect:
(1) Foreseeability of departure of its intended design.;
(2) Overall safety provided by an alternative design;
(3) Consumer knowledge or lack thereof;
(4) Added cost of the safer alternative design;
(5) Relative inconvenience to adding an alternative design.
7
R2Torts§2: Manufacturing Defect Three Factors:
(1) When an individual unit varies from its intended design,
(2) or if it varies from the manufacturer’s intended design for the product,
(3) Even though all possible care was used in the product's preparation and marketing;
8
R2Torts§2: Design Defect
A defect that could've been reduced the foreseeable risks by adopting a reasonable alternative design within the commercial chain of distribution;
9
R2Torts§2: Inadequate Instructions or Warnings:
When the foreseeable risks could've been reduced by including reasonable instructions or warnings.
10
“Manufacturing Defects” can occur when and where?
Within the entire commercial chain of distribution, even after manufacture.
11
R3Torts§2: To establish a prima facie case of defect, the PL must prove:
In a prima facie case of defect, the PL must prove availability of a technologically feasible and practical alternative design that would have reduced or prevented the plaintiff's injury.
12
R3Torts§2: Alternative design factors to not be reasonably safe.
(1) Magnitude and probability of foreseeable harms;
(2) Instructions and Warnings with the product;
(3) Consumer choices for products that may be reasonable alternatives.
(4) Consumer Expectations for the products and
(5) Alternative design's pros & cons with costs, longevity, aesthetics, repair, and maintenance. (CLARM)
13
Is the alternative design insufficient if it would've introduced other dangers of equal or greater magnitude?
Yes, an alternative design can't introduce other dangers of equal or greater magnitude.
14
What is the Majority Rule for Strict Liability of Seller:
R2Torts§402A has been adopted in whole or in part of the vast majority of states with some adopting the three defect categories from R3§2.
• §402A establishes Strict Liability for a seller of a product whose defect makes the product unreasonably dangerous.
• Subsequent decisions and, in some states, legislation, have changed or amplified its provisions.
15
R3Torts §1: Liability of Commercial Seller or Distributor for Harm Caused by Defective Products
All within the commercial chain of distribution, including nonmanufacturing sellers and distributors such as wholesalers and retailers, are subject to liability for selling products that are defective.
16
Strict Products Liability:
A defective product is one that differs from the manufacturer's intended result or from other identical units of the same product line.
17
Under Strict Product Liability a PL is obligated to prove what?
• Only that a product fell short of the manufacturer’s own specifications.
• Ignores relevant questions in a negligence context, such as conduct in creating, inspecting, and distributing the flawed product.
18
Consumer Expectations Test:
“A product is defective if it is dangerous to an extent beyond that anticipated by the ordinary user.”
19
What must a PL prove n order to prevail on punitive damages in a product liability action?
The PL has to prove that the DF acted with indifference to the high probability of injury to the PL.
20
What policy does Strict liability recognize?
• That a seller is in the best position to insure a product.
• Design defect liability places the risk of loss on a manufacturer.
21
Is evidence of a manufacturer's good faith effort to comply with all government regulations evidence of conduct inconsistent with the mental state requisite for punitive damages?
• Rule: Evidence of a manufacturer's good faith effort to comply with all government regulations is evidence of conduct inconsistent with the mental state requisite for punitive damages.
• Rule: In some states, compliance with regulations may be a full defense or a weighted consideration.
• Rule: In a product liability action, a manufacturer's state of mind represents a key element in determining whether it acted with actual fraud or actual malice.
22
Does Consumer Expectation and Risk-Utility have to be mutually exclusive.
No, most states have chosen different approaches:
(1) Permitting PLs to choose between consumer expectations and risk-utility;
(2) Permitting PLs to show defects using Consumer Expectations, then allowing DFs to rebut using Risk-Utility;
(3) Permitting Consumer Expectations only in appropriate cases, otherwise requiring Risk-Utility;
OR
(4) Rejecting Consumer Expectations completely and only allowing Risk-Utility to prove defects.
23
While most courts allow government regulations to be used against manufacturers in negligence cases, the same is not true under?
Under Strict Product Liability
24
Difference between Product Liability and a Strict Liability action?
Where the issue is strict liability, most courts will not allow government regulations to be used against manufacturers.
25
What is the main issue in a Products Liability Case?
The issue is not the conduct of the "reasonable person," but the condition of the product, rather than the manufacturer's conduct or knowledge.
26
Can a manufacturer, distributor, or retailer be liable in tort if a defect in a product's design or manufacture while the product is being used in a reasonably foreseeable way?
Yes, they're within the Commercial Chain of Distribution can be liable for a design or manufacure defect that causes injury while being used in a reasonably foreseeable way.
27
Consumer Expectations Test:
Provides that a product may be found defective in design if the PL proves that the product failed to perform as safely as an ordinary consumer would expect.
28
Risk Benefit Test:
• A product may be found defective in design, even if it satisfies ordinary consumer expectations, if through hindsight the jury determines that the product's design embodies excessive preventable danger
• In other words, if the jury finds that the risk of danger inherent in the challenged design outweighs the benefits of such design.
29
Is evidence for what the scientific community knew about the dangers and when they knew relevant to show what the ordinary consumer could reasonable expect in terms of safety at the time of exposure.
• No, it doesn't matter what the scientific community knew or when they knew it.
• Rule: It is the knowledge and reasonable expectations of the consumer, not the scientific community, that is relevant under the consumer expectations test.
30
Is a manufacture liable if a product fails to satisfy ordinary consumer expectations as to safety in its intended or reasonably foreseeable use?
Rule: When a product fails to satisfy ordinary consumer expectations as to safety in its intended or reasonably foreseeable use, a manufacturer is strictly liable for any resulting injuries.
31
When is expert testimony admissible in a product liability test?
Rule: Expert testimony may be admissible to prove what ordinary consumers of a product actually expect when those expectations are beyond the layman's commone experience.
32
In states like California, the consumer expectations test has been utilized in strict products liability actions involving asbestos only in cases where:
• There were neither complicated design considerations
• or Obscure components
• or Mysterious circumstances surrounding the accident,
• and the product failure was beyond an ordinary consumers commonly accepted minimum safety standards.
33
In an action for Strict Liability In Tort, the PL must prove by a preponderance of the evidence that:
(1) Seller was engaged in the business of selling the product that caused the harm;
(2) Product was sold in a defective condition unreasonably dangerous to the consumer or user;
(3) Product was one which the seller expected to and did reach the PL without any substantial change in which it was sold; and
(4) Defect was a direct and proximate cause of the PLs injuries.
34
What test do most jurisdictions use in Design Defect cases?
Rule: Some form of Risk-Utility Balancing is used by most jurisdictions in Design Defect cases.
35
What two things must a PL prove for a Design Defect?
• Must show the risks, costs and benefits of the product in question and alternative designs
• That the magnitude of the danger from the product outweighed the costs of avoiding the danger.
36
Is the adequacy of a warning relevant?
Rule: The adequacy of a warning is relevant and may even tip the balance in the decision, but it is only one of the design attributes, and thus not the sole consideration.
37
Rule: Some (7) factors of a risk-utility analysis under New Jersey law:
(1) The product's utility and desirability to the user and the public.
(2) Safety aspect such as the probability of the injury, and its seriousness.
(3) Availability of a substitute product which would be safer and meet the same need.
(4) How useful or expensive would eliminating the unsafe aspect be?
(5) The user’s ability to avoid danger by the exercise of care in using the product.
(6) User’s anticipated awareness of the dangers inherent in the product and their avoidability
(7) The feasibility of spreading the loss by setting the price of the product or carrying liability insurance.
38
What must a DF establish for an assumption of risk defense in a strict liability action?
The PL knew of the specific defect in the product and was aware of the danger arising from it, but nevertheless voluntarily and unreasonably proceeded to use the product.
39
Are Consumer Expectation and Risk-Utility mutually exclusive.
No, Consumer Expectation and Risk-Utility don't need to be mutually exclusive.
40
What approaches have most states chosen for Consumer Expectation and/or Risk-Utility.
(1) Permitting PLs to choose between the two;
(2) Permitting PLs to show defects using Consumer Expectations, then allowing DFs to rebut using Risk-Utility;
(3) Permitting Consumer Expectations only in appropriate cases, otherwise requiring Risk-Utility;
OR
(4) Only allowing Risk-Utility to prove defects.
41
What is a Failure to Warn actionable? when the risk could have been avoided by providing adequate instructions or warnings regarding the use of the products.
When the risk could have been avoided by providing adequate instructions or warnings.
42
What did the Kansas court say about cases involving a defect in Inadequate Instructions or Warnings?
The Kansas court said, “In warning cases, the test is reasonableness.”
43
Rule: Factors under Strict Liability a PL to claim a product is defective or unreasonably dangerous:
(1) Flaw was present at the time it was sold;
(2) Manufacturer of the product failed to adequately warn of the risk in how it was designed; or
(3) Although perfectly manufactured, it contained an unsafe defect.
44
Wunder which Product Liability doctrine is a manufacturer’s failure to adequately warn of its product’s reasonably foreseeable dangers renders it defective.
Under Strict Liability, a manufacturer’s failure to adequately warn of its product’s reasonably foreseeable dangers renders it defective.
45
Does a manufacturer have an ongoing duty to warn users of its products when it knows, or should know, that the product is dangerous during use?
Yes, the duty to warn is a continuous one, requiring manufacturers keep up with the current state of knowledge with its products.
• Acquired through research, adverse reaction reports, scientific literature, and other available methods.
46
Three forms of post-sale conduct by product users or others that can be relevant to the determination of the issues of defect, causation, or comparative responsibility.
(1) Product misuse,
(2) Modification,
(3) and alteration
• Whether such conduct affects one or more issues depends on the nature of the conduct and whether the manufacturer should have adopted a reasonable alternative design or provided a reasonable warning.
47
Pure Comparative Fault
PL would still be able to recover if they were Comparatively at fault for injuries, but recovery would be reduced in proportion to percentage of fault.
48
Traditional Rule: Contributory Negligence
Completely barred a PL’s recovery if he was to some degree at fault for his injuries.
49
Majority Strict Products Liability Rule:
Comparative Negligence
50
Most of Comparative Negligence courts limit it to what applications?
Most courts do not limit Comparative Negligence to instances of product misuse or unreasonable and voluntary assumption of risk.
• They allow a PL’s ordinary negligence to constitute comparative fault.
51
Some legislatures incorporate what for all torts cases?
Some legislatures have incorporated a universal definition of “contributory fault” for all tort cases, including strict products liability cases.
52
What did Prosser and Keeton consider to be the fairest way to allocate costs of accidents in products liability cases.
The comparative fault system to be the fairest way to allocate costs of accidents in products liability cases.

(Prosser and Keeton on the Law of Torts §102)
53
What are two requirements under negligence and Strict Product liability?
• Evidence that the product was unreasonably dangerous to the user
and
• The risk of harm was foreseeable by the manufacturer;
54
What does a PL’s breach of implied warranty of fitness for a particular purpose require?
Requires evidence that the item purchased was for a specific purpose.
55
Rule: When is a product's risk of harm not foreseeable by the manufacturer?
Where a product is used in a manner which could not be anticipated by the manufacturer.
56
What does an Implied Warranty of Merchantability require and not require?
• Requires that the product be fit for the ordinary purposes for which it is sold.
• Does't require the buyer prove reliance on the skill and judgment of the manufacturer.
57
In Strict Products liability is there a duty to warn of known dangers?
No, under Stricts Product Liabiilty there is no duty to warn of known dangers, only a duty to consider only those risks of injury which are foreseeable.
58
Two Factors for a Manufacturing Defect:
(1) A product has a manufacturing defect if it varies from other units in an unintended way,
(2) or if it varies from the manufacturer’s intended design for the product.
59
Public Policy reasons for liability on manufacturers:
(1) The deep pocket theory.
(2) The risk spreading theory.
60
The Deep Pocket Theory of Imposing Liability on Manufacturers:
This theory holds that it makes sense to place liability on the wealthier party, who has less need for the money at stake or who gives less value to each dollar and so suffers a lesser subjective loss than the poorer plaintiff.
61
What's a problem with The Deep Pocket Theory?
That manufacturers are not always wealthy.
62
The Risk Spreading Theory of Imposing Liability on Manufacturers
This theory holds that it makes sense to distribute the loss as widely as possible, so that many individuals suffer a small loss rather than one victim suffering a large loss.
63
The "state of the art" defense:
In any product liability action, it shall be rebuttably presumed that the product which caused the injury, death, or property damage was not defective and that the manufacturer or seller thereof was not negligent if the product:

• (a) Prior to sale by the manufacturer, conformed to the state of the art, as distinguished from industry standards, applicable to such product in existence at the time of sale. . . .
64
What did the Kansas court say about cases involving a defect in Inadequate Instructions or Warnings?
The Kansas court said, “In warning cases, the test is reasonableness.”
65
The “Read and Heed” Rule:
A seller is entitled to assume that if it has provided adequate warnings, those warnings would be read and heeded by product users.
66
Why is the Read and Heed rule relevant?
• Relevant to deciding whether a product is a design defect.
• Consumers’ expectations are informed by what they're presumed to have read.
• PL must prove that they would've followed a warning if there was one.
67
"Heeding Presumption":
A number of states allow a jury to assume that the PL would have obeyed a warning if it had been given.
68
R2§402A: Adequate Warning Rule:
A product with an adequate warning is neither defective nor unreasonably dangerous.
• Many states do not follow this rule the "adequate warning rule"
69
Why have many Consumer Expectation states rejected the "Adequate Warning Rule"?
Consumer Expectation states that have rejected the rule argue that the warning is a factor in determining if the product was defective and dangerous beyond a reasonable consumer’s expectation.
70
R2§402A took the position that contributory negligence would bar or not bar recovery in a strict liability products case?
Contributory Negligence is no bar to recovery in a Strict Liabiity case.
Assumption of the risk would still operate as a complete bar to recovery.
There could be no recovery if an injury was caused by “abnormal” use of a product.
71
Under R2§402A would Assumption of the Risk still operate as a complete bar to recovery?
Yes, under R2§402A assumption of the risk would still operate as a complete bar to recovery.
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