PRODUCT LIABILITY HAI HA, Hoang QUAN, Ngo Duc TRUNG, Le Quang
Outline1, Introduction2, Theory of product liability3, Types of liability4, Breach of warranty5, Neglience6, Strict liability7, Consumer protection8, Applied Case: MacDonald’s coffee lawsuit.
Introduction• Putting defective products into marketplace• Assume liability for injuries that product cause
Theories of Product LiabilityFour different theories:• Neglience• Breach of warranty• Strict liability• Consumer protection
Types of liabilityThree major types of product liability claims:• Manufacturing defect• Design defect• Marketing defect
Types of liability• Manufacturing defects:- Occurrence in manufacturing process- Poor-quality materials• Design defects:- Dangerous or useless product design• Marketing defects:- Dangers mitigated through adequate warnings
Breach of warranty• Express or implied statements by seller• Three types of warranties:+ Breach of an express warranty+ Breach of an implied warranty of merchantability+ Breach of an implied warranty of fitness for aparticular purpose
Breach of warranty• Express warranty:- An affirmation made by manufacturer- Expressed by word spoken or writtent contract• Implied warranty of merchantability:- Standards of quality and reasonable safety• Warranty of fitness for particular purpose:- Particular requirement to select suitable goods
NegligenceApply to:• Manufaturer, careless defect• Company, assemble without discover defect• Vendor, not exercise
NegligencePersons receive cares:• Initial buyer• Family member• Bystanders• Person, hold from purchasers
Product Liability• What happened?• McDonald’s Defences• Conviction.
Legal Result• McDonald’s was charge of• Product defect• Breach of the implied warranty of merchantability• Breach of implied warranty of fitness for particular purpose• Court trial compesation: $2.7 Million• Real compensate: 640,000$