Chapter 7

Question 1

Strict Liability

Answer 1

Liability regardless of fault. In tort law, strict liability may be imposed on defendants in cases involving abnormally dangerous activities, dangerous animals, or defective products.

Question 2

Application of Strict Liability

Answer 2

Manufacturer can better bear the cost of injury because it can spread the cost throughout society by increasing price of goods

Manufacturer is making a profit from its activities and therefore should bear the cost of injury as an operating expense

Question 3

Bailments

Answer 3

exits when goods are transferred temporarily into care of another

Question 4

Product Liability

Answer 4

The legal liability of manufacturers, sellers, and lessors of goods to consumers, users, and bystanders for injuries or damages that are caused by the goods

Question 5

Product Liability - based on negligence

Answer 5

1. Designing the product
2. Selecting the materials
3. Using appropriate production process
4. Assembling/testing product
5. Placing adequate warning label

Question 6

Privity of Contract

Answer 6

relationship that exits between the party and contract.

NOT REQUIRED IN PRODCUT LIABILITY

Question 7

Strict Product Liability and Public Policy

Answer 7

Consumers should be protected against unsafe products

Makers/distribution should not escape liability for faulty products on basis of privity of contract with ultimate user of those products

Makers/distribution can better bear the costs associated with injuries caused by their products

Question 8

Restatement of Torts - Requirements

Answer 8

Product was dangerous beyond the expectation of the ordinary consumer

Less dangerous alternative was economically feasible for the maker, but maker failed to produce it.

Question 9

Product Defects

Answer 9

1. Manufacturing defects
2. Design defects
3. Inadequate warnings

Question 10

Market-Share Liability

Answer 10

Theory that a court can hold each manufacturer responsible for a percentage of plaintiff’s damages that is equal to percentage of its market share

Many jurisdiction does not recognize this theory

Question 11

Defenses of Product Liability

Answer 11

1. Preemption
2. Assumption of Risk
3. Product Misuse
4. Comparative Negligence
5. Commonly Known Dangers
6. Knowledgeable User
7. Statutes of Limitations/Response