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 !