Essay about Business Law Notes

Submitted By e52776
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Chapter 6 – Product Liability

Product Liability – liability of manufacturers, sellers, lessors and others for injuries caused by defective products (compensative damages)
Strict Liability – may recover punitive damages if defendant’s conduct has been reckless or intentional.

Negligence – Only party who was actually negligent is liable to the plaintiff

Failure to exercise duty of care:
Failure to assemble carefully
Negligent product design
Inspections of testing
Failure to warn of the dangerous propensities of a product

Misrepresentations: fraudulently misrepresents the quality of a product or conceals a defect in it

Strict Liability – liability without fault Makes manufacturers, distributors, wholesalers, retailers and others in the chain of distribution of a defective product liable for the damages caused by the defect, irrespective of fault Does not require the injured person to prove that the defendant breached duty of care Casual sales and transactions by non-merchants are not covered Applies only to products, not services Parties who can recover for strict liability
Any injured party
Privity of contract not required
Recovery possible even if the injured party had no contractural relations with the defendant
Bystanders and non-users are entitled to the same protection as users
Damages recoverable:
Vary by jurisdiction
Property damages recoverable in most jurisdictions
Economic loss in few jurisfictions

Plaintiff can allege multiple product defects in one lawsuit
The injured party does not have to prove who caused the product to become defective

Defect in design Risk utility analysis – was the item at fault have any utility.

Crashworthiness doctrine – automobile manufacturers have duty to design automobiles taking into account the possibility of a second collision.

Failure to Warn - defect that occurs when a manufacturer does not place a warning on the packaging of products that could cause injury if the danger is unknown.

Defect in Packaging – duty to design and provide safe packages for their products. Containers should be tamper proof

Failure to provide adequate instructions
Inadequate testing of products
Inadequate selection of component parts

Abnormal misuse of the product relieves the seller of product liability

Supervening event – the manufacturer is not liable if: A product is materially altered after left manufacturer.

Statute of repose – limits the sellers liability to a certain number of years from the date when the product was first sold (varies from state to state)

Chapter 8 – criminal law

US Criminal law system: Person charged is presumed innocent until proven guilty The burden of proof is on the government Accused must be found guilty beyond a reasonable doubt Accused is provided with constitutional safeguards

Crime – any act done by an individual in violation of those duties that he or she owes to society and for the breach fo which the law provides that the wrongdoer shall make amends to the public

Parties: Plaintiff – the government Defendant – the accused The government is represented by prosecutor

Merely thinking about a crime is not a crime, because no action has been taken

Criminal Procedure Arest – warrant based on showing probable cause Warrantless allowed when: Commission of crime A person is fleeing from the scene of a crime A situation where