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Products Liability 1 Introduction Products liability refers to the liability of any or all parties along the chain of manufacture of any products for damage caused by those products This includes the manufacturer of component parts at the top of the chain an assembling manufacturer the wholesaler and the retail storeowner at the bottom of the chain Products containing inherent defects can cause harm to a consumer of the products or someone to whom the products was loaned given etc While products are generally thought of as tangible personal property products liability has stretched that definition to include intangibles gas naturals pets real estate house and writings navigational charts In its simplest form products liability means the manufacturer of a product owes the consumer the obligation to manufacture and design a product that is reasonably safe If the product is unreasonably dangerous or if it is unsafe for reasonably foreseeable uses then the manufacturer is liable for injuries that are caused by the product For example if a defective bolt fractures and causes a beam to fall on an ironworker then the manufacturer of the bolt may be liable under products liability law If you drink a can of cola and it contains salmonella or some other bacteria the manufacturer would be liable Products liability has a long history but two concepts emerged by the middle of eighteenth century has prominent effect on products liability These two concepts are- 1Caveat Emptor Concept According to this concept purchaser has to take care of hisher own interest This concept was resulted from Adam Smiths invisible hand theory 2Privity of Contract Concept According to this concept manufacturer and injured party have a contractual relationship The customer can not directly sue the manufacturer for a defective product If the injured party had used the product but was not the purchaser of product there could be no suit Both
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