Product Liability

Product liability refers to manufacturers’ and sellers’ responsibility for defects in the products they make and sell. A product liability lawsuit may be based on either negligence or strict liability from tort law. Alternatively, a product liability case can be based on misrepresentation or breach of warranty due to contract law. You will learn more about contracts later in this module.

Manufacturers have a responsibility to produce products that are reasonably safe in both their intended and anticipated uses. In negligence-based product liability cases, plaintiffs typically make one of three types of claims:

1. Design defects. This means the product’s design is inherently unsafe or dangerous.
   • Example: Stanley recalled 2.6 million insulated cups when it was discovered that the lid’s material shrank when heated, which could cause hot liquid to spill unexpectedly.^[1]
2. Manufacturing defects. The problem here isn’t the design but something that went wrong during the manufacturing or quality control process.
   • Example: Tesla recalled over 46,000 Cybertrucks because an external panel was attached using the wrong adhesive, making it possible for the part to fall off while driving.^[2]
3. Failure-to-warn defects. The manufacturer or seller acted unreasonably by failing to provide adequate instructions about the product’s use or warn the buyer of potential danger of misuse.
   • Example: Frito-Lay recalled some Lay’s potato chips because the labels didn’t mention that the chips contained milk, a serious problem for people with milk allergies.^[3]

In cases like these, companies often issue a product recall to proactively remove unsafe products from the market and prevent harm. Recalls help limit legal liability and protect the company’s reputation.

However, if a company fails to recall a defective product or does so too late, it can still be held legally responsible. Injured consumers can pursue lawsuits even if a recall never happened. The absence of a recall may actually strengthen the plaintiff’s case by suggesting negligence or disregard for customer safety.

In addition to negligence, an injured person can also file a product liability claim where they need to show that:

• the product was defective,

• the defect existed when it left the manufacturer or seller, and

• the defect directly caused their injury.

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