nRefers to the legal responsibility of those who supply
goods whose defects cause
injuries or losses to others.
nAmerican courts originally accepted the English doctrine
of caveat emptor but during the 20th century they began discussing the doctrine of strict liability mentioned
above in reference to
manufacturers of products.
nToday a plaintiff whose person or property suffers
injury causally related to an
unsafe product may opt to bring suit for
negligence or breach of warranty or, in most states, may have a cause of action for “products liability” based on the
doctrine of strict tort liability.
nThe rationale for imposing such liability is that it
will increase the level of
safety. Moreover, manufacturers and distributors
can cover most risks of this type by liability insurance.