PRODUCT LIABILITY

HAI HA, HoangQUAN, Ngo DucTRUNG, Le Quang

Outline

1, Introduction2, Theory of product liability3, Types of liability4, Breach of warranty5, Neglience 6, 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 Liability

Four different theories:

• Neglience• Breach of warranty• Strict liability• Consumer protection

Types of liability

Three 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 a particular 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

Negligence

Apply to:• Manufaturer, careless defect

• Company, assemble without discover defect

• Vendor, not exercise

Negligence

Persons receive cares:• Initial buyer• Family member• Bystanders• Person, hold from purchasers

Negligence

Company’s duties:• Designs, impected• Adequate warning , directions• Sellers, illegal, safety or charaters.

Strict liability

• Product concentration

• Negligence disadvantage : plantiff, prove, breach under care standard

• Difficult and expensive finding

Consumer protection

• Prohibit unconscionable acts

• Render product itself, not other property

Applied case

The McDonald’s

coffee lawsuit

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: $2.7 Million• Real compensate: 640,000$

Subsequent Actions

Thank you for you attention !