Page 36 Flashcards
(41 cards)
If a contractor provides a defective product, can he be liable?
Yes, because the product is what is at issue
If a company has purchased the assets of a prior manufacturer without assuming its liabilities, are they liable for injuries caused by defects in the predecessor’s products?
No
If a company merges with another company and agrees to assume the seller’s liability, is the new owner liable for any defects in the previous company’s products?
Yes
Can a franchisor be liable for product defects?
Yes, especially when they retain some control over the franchisees’ behavior
When would a seller of a used product be held liable if it has a defect?
If he made a representation about quality, because when you buy a used product you can’t reasonably expect it to be free of defects
If you sell used property that has a defect that came from a modification or misuse between the original purchase and the sale, can SPL be imposed on you?
Yes
If you just sell your car, why are you not a proper defendant for an SPL suit?
Because SPL only applies to those regularly engaged in the business of manufacturing, selling, or leasing products, so you would just be an occasional seller
If you give commercial endorsement to a product, can you be liable if there’s a defect in the product?
No, because you didn’t put it into the stream of commerce, the most you could be liable for is negligent misrepresentation
If you publish an advertisement about a defective product, can you be liable for it?
No
Does SPL apply to things in their natural state like unprocessed poison mushrooms?
Yes
Can SPL come from an injury that happens because of the way a product was installed, serviced, or used?
No
If you give services and a product, how do courts figure out if SPL applies?
Use the dominant aspect test to see if the product is incident to the service, in which case they would be no SPL
Is electricity flowing through powerlines considered a product?
No
Can something involving blood be dealt with in strict product liability?
No, that would be in negligence
If you are injured by something that hasn’t yet been sold, can there be SPL?
No, the product must have entered the stream of commerce, so if you are injured by something that hasn’t yet been sold, the manufacture can’t be held liable for SPL
What is necessary to prove the defective product element for SPL?
Plaintiff must show the product was defective, and was a substantial factor in causing harm to a foreseeable user
What are the three different ways to prove a defect for defective product for SPL?
- manufacturing defect
- design defect
- failure to warn
What is the Quasi-Learned Hand approach to figure out if a product is defective?
If the defect presents a danger to the average consumer that exceeds the social utility of the product, then it is defective
If you assemble another company’s components into your products, can the other company’s carelessness be imputed to you?
Yes, because your duty of care extends to all components
Why do services not apply to SPL?
Because they don’t require mass production or distribution from an unknown manufacturer or seller
If a unique SPL case does go into services, what is recovery limited to?
Transactions that are commercial in character instead of professional
If there is confusion about whether a situation is a service or product for SPL, what should you do?
Apply the predominant purpose test
Why is building a home considered a product?
Because the purpose is the new house
If you buy a highly dangerous product from an unknown supplier, what is your duty of care?
You must inspect or at least warn the purchaser that the product comes from an uncertain source of supply
