{"id":2889,"date":"2023-02-19T16:10:59","date_gmt":"2023-02-19T16:10:59","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/product-liability\/"},"modified":"2025-05-20T18:16:13","modified_gmt":"2025-05-20T18:16:13","slug":"product-liability","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/product-liability\/","title":{"raw":"Learn It 5.2.4: What Is Tort Law?","rendered":"Learn It 5.2.4: What Is Tort Law?"},"content":{"raw":"<h2>Product Liability<\/h2>\r\n<p><strong>Product liability<\/strong> refers to manufacturers\u2019 and sellers\u2019 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.<\/p>\r\n\r\n[caption id=\"attachment_7766\" align=\"alignright\" width=\"300\"]<img class=\"wp-image-7766 size-medium\" src=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/20224150\/pexels-chevanon-photography-1108101-300x200.jpg\" alt=\"woman in a factory fixing machinery\" width=\"300\" height=\"200\" \/> Figure 1. Manufacturers and sellers are responsible for manufacturing defects in their products.[\/caption]\r\n\r\n<p>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:<\/p>\r\n<ol>\r\n\t<li style=\"font-weight: 400;\"><strong>Design defects.<\/strong> This means the product\u2019s design is inherently unsafe or dangerous.\r\n\r\n<ul>\r\n\t<li style=\"font-weight: 400;\">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.[footnote]Reuter, Dominick. 2024. \u201cStanley Recalls Millions of Drink Lids after Injury Reports.\u201d Business Insider. December 12, 2024. https:\/\/www.businessinsider.com\/stanley-recall-mug-lid-replacement-injury-reports-2024-12[\/footnote]<\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400;\"><strong>Manufacturing defects.<\/strong> The problem here isn\u2019t the design but something that went wrong during the manufacturing or quality control process.\r\n\r\n<ul>\r\n\t<li style=\"font-weight: 400;\">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.[footnote]Lyon, Peter. 2025. \u201cTesla Recalls Nearly Every Cybertruck due to Potential Crash Risk.\u201d Forbes. March 23, 2025. https:\/\/www.forbes.com\/sites\/peterlyon\/2025\/03\/23\/tesla-recalls-nearly-every-cybertruck-citing-loose-metal-panel-issues\/[\/footnote]<\/li>\r\n<\/ul>\r\n<\/li>\r\n\t<li style=\"font-weight: 400;\"><strong>Failure-to-warn defects.<\/strong> The manufacturer or seller acted unreasonably by failing to provide adequate instructions about the product\u2019s use or warn the buyer of potential danger of misuse.\r\n\r\n<ul>\r\n\t<li style=\"font-weight: 400;\">Example: Frito-Lay recalled some Lay\u2019s potato chips because the labels didn\u2019t mention that the chips contained milk, a serious problem for people with milk allergies.[footnote]FDA. 2024. \u201cFrito-Lay Issues Limited Recall on Undeclared Milk in Lay\u2019s Classic Potato Chips Distributed in Oregon and Washington.\u201d U.S. Food and Drug Administration. 2024. https:\/\/www.fda.gov\/safety\/recalls-market-withdrawals-safety-alerts\/frito-lay-issues-limited-recall-undeclared-milk-lays-classic-potato-chips-distributed-oregon-and[\/footnote]<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ol>\r\n<p>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\u2019s reputation.<\/p>\r\n<p>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\u2019s case by suggesting negligence or disregard for customer safety.<\/p>\r\n<p class=\"\" data-start=\"2621\" data-end=\"2913\">In addition to negligence, an injured person can also file a product liability claim where they need\u00a0to show that:<\/p>\r\n<ul data-start=\"2915\" data-end=\"3052\">\r\n\t<li class=\"\" data-start=\"2915\" data-end=\"2943\">\r\n<p class=\"\" data-start=\"2917\" data-end=\"2943\">the product was defective,<\/p>\r\n<\/li>\r\n\t<li class=\"\" data-start=\"2944\" data-end=\"3009\">\r\n<p class=\"\" data-start=\"2946\" data-end=\"3009\">the defect existed when it left the manufacturer or seller, and<\/p>\r\n<\/li>\r\n\t<li class=\"\" data-start=\"3010\" data-end=\"3052\">\r\n<p class=\"\" data-start=\"3012\" data-end=\"3052\">the defect directly caused their injury.<\/p>\r\n<\/li>\r\n<\/ul>\r\n<section class=\"textbox tryIt\">[ohm2_question height=\"350\"]3884[\/ohm2_question]<\/section>","rendered":"<h2>Product Liability<\/h2>\n<p><strong>Product liability<\/strong> refers to manufacturers\u2019 and sellers\u2019 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.<\/p>\n<figure id=\"attachment_7766\" aria-describedby=\"caption-attachment-7766\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-7766 size-medium\" src=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/20224150\/pexels-chevanon-photography-1108101-300x200.jpg\" alt=\"woman in a factory fixing machinery\" width=\"300\" height=\"200\" srcset=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/20224150\/pexels-chevanon-photography-1108101-300x200.jpg 300w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/20224150\/pexels-chevanon-photography-1108101-1024x682.jpg 1024w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/20224150\/pexels-chevanon-photography-1108101-768x512.jpg 768w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/20224150\/pexels-chevanon-photography-1108101-1200x800.jpg 1200w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/20224150\/pexels-chevanon-photography-1108101-65x43.jpg 65w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/20224150\/pexels-chevanon-photography-1108101-225x150.jpg 225w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/20224150\/pexels-chevanon-photography-1108101-350x233.jpg 350w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/20224150\/pexels-chevanon-photography-1108101.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-7766\" class=\"wp-caption-text\">Figure 1. Manufacturers and sellers are responsible for manufacturing defects in their products.<\/figcaption><\/figure>\n<p>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:<\/p>\n<ol>\n<li style=\"font-weight: 400;\"><strong>Design defects.<\/strong> This means the product\u2019s design is inherently unsafe or dangerous.\n<ul>\n<li style=\"font-weight: 400;\">Example: Stanley recalled 2.6 million insulated cups when it was discovered that the lid&#8217;s material shrank when heated, which could cause hot liquid to spill unexpectedly.<a class=\"footnote\" title=\"Reuter, Dominick. 2024. \u201cStanley Recalls Millions of Drink Lids after Injury Reports.\u201d Business Insider. December 12, 2024. https:\/\/www.businessinsider.com\/stanley-recall-mug-lid-replacement-injury-reports-2024-12\" id=\"return-footnote-2889-1\" href=\"#footnote-2889-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><strong>Manufacturing defects.<\/strong> The problem here isn\u2019t the design but something that went wrong during the manufacturing or quality control process.\n<ul>\n<li style=\"font-weight: 400;\">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.<a class=\"footnote\" title=\"Lyon, Peter. 2025. \u201cTesla Recalls Nearly Every Cybertruck due to Potential Crash Risk.\u201d Forbes. March 23, 2025. https:\/\/www.forbes.com\/sites\/peterlyon\/2025\/03\/23\/tesla-recalls-nearly-every-cybertruck-citing-loose-metal-panel-issues\/\" id=\"return-footnote-2889-2\" href=\"#footnote-2889-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><strong>Failure-to-warn defects.<\/strong> The manufacturer or seller acted unreasonably by failing to provide adequate instructions about the product\u2019s use or warn the buyer of potential danger of misuse.\n<ul>\n<li style=\"font-weight: 400;\">Example: Frito-Lay recalled some Lay\u2019s potato chips because the labels didn\u2019t mention that the chips contained milk, a serious problem for people with milk allergies.<a class=\"footnote\" title=\"FDA. 2024. \u201cFrito-Lay Issues Limited Recall on Undeclared Milk in Lay\u2019s Classic Potato Chips Distributed in Oregon and Washington.\u201d U.S. Food and Drug Administration. 2024. https:\/\/www.fda.gov\/safety\/recalls-market-withdrawals-safety-alerts\/frito-lay-issues-limited-recall-undeclared-milk-lays-classic-potato-chips-distributed-oregon-and\" id=\"return-footnote-2889-3\" href=\"#footnote-2889-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p>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\u2019s reputation.<\/p>\n<p>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\u2019s case by suggesting negligence or disregard for customer safety.<\/p>\n<p class=\"\" data-start=\"2621\" data-end=\"2913\">In addition to negligence, an injured person can also file a product liability claim where they need\u00a0to show that:<\/p>\n<ul data-start=\"2915\" data-end=\"3052\">\n<li class=\"\" data-start=\"2915\" data-end=\"2943\">\n<p class=\"\" data-start=\"2917\" data-end=\"2943\">the product was defective,<\/p>\n<\/li>\n<li class=\"\" data-start=\"2944\" data-end=\"3009\">\n<p class=\"\" data-start=\"2946\" data-end=\"3009\">the defect existed when it left the manufacturer or seller, and<\/p>\n<\/li>\n<li class=\"\" data-start=\"3010\" data-end=\"3052\">\n<p class=\"\" data-start=\"3012\" data-end=\"3052\">the defect directly caused their injury.<\/p>\n<\/li>\n<\/ul>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm3884\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=3884&theme=lumen&iframe_resize_id=ohm3884&source=tnh&show_question_numbers\" width=\"100%\" height=\"350\"><\/iframe><\/section>\n<hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-2889-1\">Reuter, Dominick. 2024. \u201cStanley Recalls Millions of Drink Lids after Injury Reports.\u201d Business Insider. December 12, 2024. https:\/\/www.businessinsider.com\/stanley-recall-mug-lid-replacement-injury-reports-2024-12 <a href=\"#return-footnote-2889-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-2889-2\">Lyon, Peter. 2025. \u201cTesla Recalls Nearly Every Cybertruck due to Potential Crash Risk.\u201d Forbes. March 23, 2025. https:\/\/www.forbes.com\/sites\/peterlyon\/2025\/03\/23\/tesla-recalls-nearly-every-cybertruck-citing-loose-metal-panel-issues\/ <a href=\"#return-footnote-2889-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-2889-3\">FDA. 2024. \u201cFrito-Lay Issues Limited Recall on Undeclared Milk in Lay\u2019s Classic Potato Chips Distributed in Oregon and Washington.\u201d U.S. Food and Drug Administration. 2024. https:\/\/www.fda.gov\/safety\/recalls-market-withdrawals-safety-alerts\/frito-lay-issues-limited-recall-undeclared-milk-lays-classic-potato-chips-distributed-oregon-and <a href=\"#return-footnote-2889-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":21,"menu_order":11,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Product Liability\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc-attribution\",\"description\":\"Understanding the Legal and Tax Environment\",\"author\":\"\",\"organization\":\"OpenStax\",\"url\":\"https:\/\/openstax.org\/books\/introduction-business\/pages\/a-understanding-the-legal-and-tax-environment\",\"project\":\"Introduction to Business\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"woman in factory\",\"author\":\"Chevanon Photography\",\"organization\":\"Pexels\",\"url\":\"https:\/\/www.pexels.com\/photo\/woman-wears-yellow-hard-hat-holding-vehicle-part-1108101\/\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":2878,"module-header":"learn_it","content_attributions":[{"type":"original","description":"Product Liability","author":"Nina Burokas","organization":"Lumen Learning","url":"","project":"","license":"cc-by","license_terms":""},{"type":"cc-attribution","description":"Understanding the Legal and Tax Environment","author":"","organization":"OpenStax","url":"https:\/\/openstax.org\/books\/introduction-business\/pages\/a-understanding-the-legal-and-tax-environment","project":"Introduction to Business","license":"cc-by","license_terms":""},{"type":"cc","description":"woman in factory","author":"Chevanon Photography","organization":"Pexels","url":"https:\/\/www.pexels.com\/photo\/woman-wears-yellow-hard-hat-holding-vehicle-part-1108101\/","project":"","license":"cc-by","license_terms":""}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2889"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":14,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2889\/revisions"}],"predecessor-version":[{"id":9401,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2889\/revisions\/9401"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/2878"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2889\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=2889"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=2889"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=2889"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=2889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}