Chapter 7 - C13 Insurance Against Liability – Part 1 Download

STUDY 7 – Products Liability and its Effects.pdf  View or Download

Terms	Definitions
Who may be involved in a products liability claim?	only the original parties to a contract have the right to sue one another.
What is privity of contract?	it is the relationship between the contracting parties.
What effect did privity of contract have on consumers and products liability?	only the buyers could sue for injuries. Purchasers and middlemen were left out.
What is the tort theory established by the U.S. case of McPherson v. Buick Motor Co. (1916)?	the injured party may sue the manufacturer.
Outline the case of Buckley v. Mott (1920) and the principle it reinforced.	the plaintiff was injured by powdered glass found in a chocolate ice cream bar. It reinforced the principle of negligently made goods.
In what landmark case was the tort duty of care set out for manufacturers?	Donoghue v. Stevenson (1932) It extended the duty of care of the manufacturer not only to the purchaser but to anyone who foreseeably be injured.
What is the purpose of a sale of goods act or the Consumer Protection Act?	to recognize that an innocent party should receive adequate protection from manufacturers.
What must the manufacturer of inherently dangerous products provide?	they must provide adequate warnings on the products.
What was the outcome in Lambert v. Lastoplex Chemicals Co. (1972) and why?	the manufacturer was found liable for labels that failed to warn of the high inflammability of the product and words used did not alert of the necessity to extinguish pilot lights.
What must manufacturers do when a defect in their products is discovered?	the onus is on the manufacturer to warn customers when the defect is discovered.
How did the term sistership arise in products liability?	a particular airplane was found to have a certain defect. all planes of that model were grounded to repair or replace affected parts if found to be defective.
In Rivtow Marine Ltd. v. Washington Iron Works (1973) a manufacturer was held liable even though the product had not yet manifested damage. What was the principle established here?	the manufacturer was liable to warn the plaintiff of a prior knowledge of a defect despite no damage occurring.
What factors are considered to determine whether reactions caused by drugs are claimable?	the benefit to society and adequate warning on the label are factors.
What are the elements of a tort action in a products liability case?	contributory negligence volenti non fit injuria denial of negligence
Why is it so difficult for the plaintiff to provide proof that the defendant was negligent in the manufacturing process?	it is difficult to prove as the product may have become defective as it passed through some phase of preparation, handling, sale and service while in the hands of the manufacturer, wholesaler, distributor, retailer and the service, repair or maintenance agencies.
What does res ipsa loquitur describe and how does it affect onus of proof?	it describes an inference that the manufacturer was negligent because there was no other possible way that the product could become defective. onus shifts to the manufacturer.
Under what circumstances can you bring suit for breach of warranty?	when the product is unfit for its intended purpose and the plaintiff suffers damages.
What warranty is provided through the sale of goods acts?	the buyer is entitled to a warranty of fitness from the seller.
When goods are purchased under a brand name what warranty exists?	there is no warranty.
A suit in contract does not require a finding of negligence and thus it is related to what particular type of liability.	products liability.
What are some of the duties imposed by the Consumer Protection Act of Quebec?	reasonable fitness of goods and the goods must conform to the description of them. Sets out action that can be taken by the injured parties when no contract exists with the manufacturer.
How do insurance policies usually deal with deliberate actions?	claims may not be covered as the damage was a result of a deliberate action of the manufacturer.
How does products liability law compare between Canada and the U.S.A.?	the U.S. places a heavier burden on manufacturers and suppliers than Canada. a doctrine of strict liability exists in most U.S. states were the manufacturer is held liable without the plaintiff being required to prove negligence.