In: Accounting
What are the contact theories of liability What are the common law tort theories of liability?
There are three contract theories of liability.
These are:
(1) Breach of warranty
(2) Negligence
(3) Strict liability.
Tort law
Product liability is the area of law in which product manufacturers, distributors, and sellers are held responsible for the injuries caused by their products.
Products Liability identifies the following: manufacturing defect, design defect, failure to warn (also known as marketing defects).
Manufacturing defects are those that occur in the manufacturing process and usually involve poor-quality materials or shoddy workmanship.
Design defects occur where the product design is inherently dangerous or useless (and hence defective) no matter how carefully manufactured; this may be demonstrated either by showing that the product fails to satisfy ordinary consumer expectations as to what constitutes a safe product or that the risks of the product outweigh its benefits.
Failure-to-warn defects arise in products that carry inherent non-obvious dangers that could be mitigated through adequate warnings to the user, and these dangers are present regardless of how well the product is manufactured and designed for its intended purpose.