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Product liability presentation


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Product liability presentation

  2. 2. Outline1, Introduction2, Theory of product liability3, Types of liability4, Breach of warranty5, Neglience6, Strict liability7, Consumer protection8, Applied Case: MacDonald’s coffee lawsuit.
  3. 3. Introduction• Putting defective products into marketplace• Assume liability for injuries that product cause
  4. 4. Theories of Product LiabilityFour different theories:• Neglience• Breach of warranty• Strict liability• Consumer protection
  5. 5. Types of liabilityThree major types of product liability claims:• Manufacturing defect• Design defect• Marketing defect
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. NegligenceApply to:• Manufaturer, careless defect• Company, assemble without discover defect• Vendor, not exercise
  10. 10. NegligencePersons receive cares:• Initial buyer• Family member• Bystanders• Person, hold from purchasers
  11. 11. NegligenceCompany’s duties:• Designs, impected• Adequate warning , directions• Sellers, illegal, safety or charaters.
  12. 12. Strict liability• Product concentration• Negligence disadvantage : plantiff, prove, breach under care standard• Difficult and expensive finding
  13. 13. Consumer protection• Prohibit unconscionable acts• Render product itself, not other property
  14. 14. Applied case The McDonald’scoffee lawsuit
  15. 15. Product Liability• What happened?• McDonald’s Defences• Conviction.
  16. 16. 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: $2.7 Million• Real compensate: 640,000$
  17. 17. Subsequent Actions
  18. 18. Thank you foryou attention !