Question

What was perceived to be inadequate about warranty and negligence theories that necessitated the development of strict liability?

Answer 1

Warranty theory is a contract theory. It is about contractual arrangements in the presence of asymmetric information. The warranties, grounded in the Uniform Civil Code, are ineffective in assuring recovery for a plaintiff's injuries. Privity requirements, the ability of a seller to disclaim the warranties, notice requirements are the problems with this theory.

Negligence theory is another products-liability theory. It obviates privity problems related to the warranty theory. It is inadequate owing to the problem of pre-emption. To overcome these problems, tort theory of strict liability has been developed. This tort theory does not require proof of negligence.

Under section 402 A of strict liability, strict liability in the following instances:

• Engaged in the business of selling
• Product unreasonably dangerous
• Seller makes the product reach the purchasing individual without a change in condition
• Liability despite exercise of due care, and, without contractual relation