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Business Law Chapter 6


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Define design defect.
occurs when, even though the product is manufactured according to specifications.
Explain the significance of breach of warranty.
The question is whether the quality, characteristics, and safety of the product were consistent with the implied or express representations made by the seller. The reasonableness of the manufacturer's actions is not at issue.
Define privity of contract.
The necessity for a person injured by a product to be in a contractual relationship with the seller of the product in order for the injured person to recover damages.
Explain the significance of negligence.
A breach of the requirement that a person act with the care a reasonable person would use in the same circumstances.
Discuss the concept of strict product liability.
Strict product liability in tort allows a person injured by an unreasonably dangerous product to recover damages from the manufacturer or seller of the product. Negligent conduct on the part of the manufacturer or seller is not required.
Discuss the elements necessary for recovery under strict product liability.
The plaintiff must prove that 1. the plaintiff, or his or her property, was harmed by the product 2. the injury was caused by a defect in the product 3. the defect existed at the time it left the defendent and did not substantially change along the way.
Define market-share liability.
The liability for damages caused by a manufacturer's products assessed based on a manufacturer's national market share.
Define preemption defense.
The immunity granted manufacturers if they meet minimum standards for conduct under certain regulatory schemes.
Explain the significance of statute of limitations.
A statute of limitations defines a time limit, within which a lawsuit must be brought.
Explain the significance of the misuse of product.
The manufacturer will not be held liable for injuries resulting from abnormal use of its product. But an unusual use that is reasonably forseeable may be considered a normal use.
Define joint liability.
In a case in which the court determines that multiple defendants are at fault, the doctrine whereby a plaintiff may collect the entire judgement from any single defendent, regardless of the degree of the defendent's fault.
Explain the significance of product liability.
The liability of a manufacturer or seller of a product that because of a defect, causes injury to a purchaser, user, or bystander.
Discuss the significance of failure to warn.
To avoid charges of failure to warn, a product must carry adequate warnings of the risks involved in the normal use of the product. A product must also be accompanied by instructions for its safe use. A warning cannot shield the manufacturer from liability for a defectively manufactured or designed product.
Define comparitive fault.
The liability of an injured party because of misuse or abuse of manufacturer's product.
Define discovery-of-injury statute.
Statutes that provide that the statute of limitations does not begin to run until the person discovers the injury.
Explain the significance of manufacturing defect.
A flaw in a product that occurs during production, such as a failure to meet the design specifications.

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