INDIAN INSTITUTE OF MANAGEMENT,

JAMMU

LEGAL ASPECT OF MANAGEMENT

Report on

LAWS RELATING TO PRODUCT LIABILITY

Instructor- prof. (Dr.) D.S Senger

ByAditya Raj Pandey pgpj01004

Chinmaya Sahoo - pgpj01017
K. Lokesh Kumar - pgpj01029
Paran Sharma - pgpj01041
Thakor Darshan Vijaykumar r- pgpj01053

CONTENTS

1. INTRODUCTION

2. STATUS OF PROBLEM

3. JUDICIAL APPROACHES TO DEAL WITH PROBLEM

4. LIEBECK v. MCDONALDS CASE

5. ROLE OF NGO

6. ROLE OF BUSINESS INDUSTRY AND ASSOIATION

6. ROLE OF LEGAL EDUCATION AND AWARENESS

7. CONCLUSION

8. PLAGIARISM REPORT

8. REFERENCES

PRODUCT LIABILITY

Q1. What is product liability?

Ans.
The responsibility of a manufacturer or vendor of goods to compensate for injury caused by
defective merchandise that ithas provided for sale.

Products liability refers to the liability of any or all parties on the chain of manufacture of any
product for injury caused by that product. This includes the manufacturer
of element components (at the highest of the chain), Associate in
Nursing aggregation manufacturer, the middleman, and therefore the outlet owner (at very
cheap of the chain). Product containing inherent defects that cause damage to a client of the
merchandise, or somebody to whom the merchandise was loaned, given, etc., area unit the
themes of product liability suits. Whereas product area unit usually thought of as
tangible private property, product liability has stretched that definition to incorporate
intangibles (gas), naturals (pets), assets (house), and writings (navigational charts).
Products liability claims are often supported negligence, strict liability, or breach
of warrantee of fitness reckoning on the jurisdiction among that the claim is
predicated. Many countries have enacted comprehensive product liability statutes. These
statutory provisions are often terribly various such the us Department of Commerce
has published a Model Uniform product Liability Act (MUPLA) for voluntary use by the
states. Theres no federal product liability law.
In any jurisdiction one should prove that the merchandise is flawed. There area
unit 3 varieties of product defects that incur liability in makers and
suppliers: style defects, producing defects, and defects in selling. Style defects area
unit inherent; they exist before the merchandise is factory-made. Whereas the
item may serve its purpose well, it are often immoderately dangerous to use as a result
of a style flaw. On the opposite hand, producing defects occur throughout the

development or production of the item. Solely some out of the many product of a
similar kind area unit imperfect during this case. Defects
in selling affect improper directions and failures to warn customers of latent dangers within
the product.
Products Liability is mostly thought of a strict liability offense. Strict liability wrongs don't rely
upon the degree of carefulness by the litigator. Translated to product liability terms,
a litigator is liable once it's shown that the merchandise is flawed. Its extraneous whether or
not the manufacturer or provider exercised nice care; if there's a defect within the product
that causes damage, he or she's going to be answerable for it.
The law of product liability is found chiefly in common law (state judge-made law) and within
the Uniform business Code. Article a pair of of the UCC deals with the sales of
products and it's been adopted by most states. In it, the foremost necessary product liability
sections area unit the understood and categorical warranties of merchantability within
the sales of products 2-314 and 2-315. Product liability comes chiefly from Torts law
Q2. What do you mean by Product liability under the Consumer Protection Act and
what are its liabilities under this act?
Ans. Product liability is that the space of law within which makers, distributors, suppliers and
retailers are control liable for any injuries merchandise cause. In spite of any written
agreement limitations of liability, if a product or any of its element components are defective
its manufacturer is also answerable for injury below the buyer Protection Act (CPA) or the
common law of negligence. An action below the certified public accountant or for
negligence is brought for death, personal injury and injury caused to
personal property because the results of a product defect. Neither kind of action is wont
to catch up on pure economic or of import loss. This guide considers claims for a defective
product below the buyer Protection Act. cf. our Out-Law Guide to Product Liability for
negligence.
Liability below half of the certified public accountant
the certified public accountant introduced statutory liability for defective merchandise.
Liability below the certified public accountant exists aboard liability in negligence, and in
some cases a typical law claim could succeed wherever a claim wouldn't be on the
market below the certified public accountant. The certified public accountant applies
to each merchandise employed by customers and merchandise utilized in an area of labor.

The certified public accountant imposes strict liability on makers of

defective merchandise for damage caused by those merchandise. This implies that
folks WHO are scraped by defective merchandise will sue for compensation while
not having to prove that the manufacturer was negligent. it's just necessary to prove that the
merchandise was defective, which any injury or injury was possibly caused by the
merchandise.
Applicability
The certified public accountant applies to all or
any client merchandise and merchandise used at an area of labor. The inclusion of
'products used at {a placeman are} of labor' extends the scope of the law to
incorporate sales of merchandise between businesses instead of simply sales
to customers if such merchandise are utilized in an area of work.
A claim is also brought below the certified public accountant by anyone WHO is scraped by
a 'defective product', in spite of whether or not that person purchased the merchandise. A
claim is also brought for death, personal injury or injury to personal property in far more
than 275. However, no claim is also brought for injury to business property or for 'pure'
economic losses. Particularly, the certified public accountant provides that a claim cannot
be created for the loss of or injury to the defective product itself. Apart from these
restrictions, the certified public accountant imposes no money limit on the producer's total
liability.

Q3. What are the theories of Liabilities?

Ans. In the U. S., the claims most ordinarily related to product liability area unit negligence,
strict liability, breach of assurance, and varied shopper protection claims. The bulk of
product liability laws area unit determined at the state level and vary wide from state to
state. Every style of product liability claim needs completely different components to
be evidenced to gift a flourishing claim.
In most jurisdictions, a plaintiff's explanation for action is also supported one or a lot of of
4 completely different theories: Negligence, breach of assurance, falsehood, and strict civil
wrong liability.
Negligence refers to the absence of, or failure to exercise, correct or guardianship. It implies

that a personal World Health Organization had a legal obligation either omitted to try and
do what ought to are done or did one thing that ought to not are done. A
manufacturer is control responsible for negligence if lack of guardianship within
the production, design, or assembly of the manufacturers product caused hurt. as an
example, a producing company may well be found negligent if its workers didnt perform
their work properly or if management sanctioned improper procedures associated an unsafe
product was created. Breach of assurance refers to the failure of a vender to satisfy the
terms of a promise, claim, or illustration created concerning the quality or style of the
merchandise.
The law assumes that a vender provides bound warranties regarding merchandise that area
unit sold-out and that he or she should stand behind these assertions.
Misrepresentation within the advertising and publicity of a product refers to the method of
giving customers false security concerning the protection of a
selected product, unremarkably by drawing attention removed from the hazards of its
use. Associate action lies within the intentional concealment of potential hazards or in
negligent falsehood. The key to recovery on the basis of falsehood is that the plaintiff's
ability to prove that he relied upon the representations that were created.
Misrepresentation is argued underneath a theory of breach of categorical assurance or a
theory of strict civil wrong liability.
Strict liability involves extending the responsibility of the seller or manufacturer to any or
all people World Health Organization may well be bruised by the product, even within
the absence of fault. Bruised guests, bystanders, or others with no direct relationship to the
merchandise may sue for damages caused by the merchandise. Associate
casualty should prove that the item was defective, the defect proximately caused the
injury, and also the defect rendered the merchandise immoderately dangerous.
Q4. What are the theories of recovery?
Ans. Theories of Recovery square measure the principals upon that a client might request compensation
for injuries or inconveniences ensuing from their use of An unsafe product. once seeking recovery, the
client should gift explanation for action for wrongful conduct, which can be from bodily injury, property
injury, or pain And suffering ensuing from the meant use of an unsafe or defective product. 3 theories of
legal recovery underneath product liability law square measure Recovery underneath Manufacturer's

Defect, Recovery underneath Insufficient/Unclear warnings or directions, and Recovery underneath style
Defect.

Q5. What are the types of liabilities?

Ans. product Liability distinguishes between 3 major sorts of product liability claims:

manufacturing defect,

design defect,

a failure to warn (also referred to as selling defects).

However, in most states, these aren't legal claims in and of themselves, however area unit pleaded in
terms of the theories mentioned on top of. for instance, a complainant may plead negligent failure to warn
or strict liability for defective style.

Manufacturing defects area unit people who occur within the producing method and typically involve

poor-quality materials or shoddy craftsmanship.

Design defects occur wherever the merchandise style is inherently dangerous or useless (and

thence defective) despite however fastidiously manufactured; this could be incontestable either by showing
that the merchandise fails to satisfy normal client expectations on what constitutes a secure product, or
that the risks of the merchandise outweigh its advantages.

Failure-to-warn defects arise in product that carry inherent nonobvious dangers that might be

mitigated through adequate warnings to the user, and these dangers area unit gift despite however well
the merchandise is factory-made and designed for its meant purpose.
Q6. What is Breach of warranty?
Ans. Warranties are statements by a manufacturer or merchant regarding a product throughout an advert
dealing. pledge claims usually need privity between the victim and also the manufacturer or seller; in plain
English, this suggests they have to be addressing one another directly. Breach of warranty-based product
liability claims sometimes target one among 3 types:

(1) breach of associate specific pledge,

(2) breach of associate inexplicit pledge of state, and
(3) breach of associate inexplicit pledge of fitness for a selected purpose.
Additionally, claims involving land may additionally take the shape of associate inexplicit pledge of
habitability. specific pledge claims target specific statements by the manufacturer or the vendor regarding
the merchandise (e.g., "This sawing machine is beneficial to chop turkeys"). the varied inexplicit warranties
cowl those expectations common to all or any product (e.g., that a tool isn't immoderately dangerous once
used for its correct purpose), unless specifically disclaimed by the manufacturer or the vendor.
Q7. What is Strict Liability?

Ans. The rule of strict liability applied in product liability suits makes a merchandiser accountable for all
defective things that unreasonably threaten the non-public safety of a client or the consumer's property.
the seller is liable if he or she frequently engaged in the business of merchandising such product, that
reach the buyer with none substantial changes having been created in their condition. the seller is liable
although he or she exercised care in handling the merchandise and if the buyer bought the product away
and had no direct dealings with the seller.
Rather than specialize in the behavior of the manufacturer (as in negligence), strict liability claims
specialize in the merchandise itself. below strict liability, the manufacturer is liable if the merchandise is
flawed, although the manufacturer wasn't negligent in creating that product defective.
The difficulty with negligence is that it still needs the complainant to prove that the defendant's conduct fell
below the relevant customary of care. However, if a complete trade tacitly settles on a somewhat careless
customary of conduct (that is, as analyzed from the attitude of a layperson), then the complainant might
not be able to recover even supposing he or she is severely scraped, as a result of though the defendant's
conduct caused his or her injuries, such conduct wasn't negligent within the legal sense (if everybody inside
the trade would inevitably testify that the defendant's conduct conformed thereto of an inexpensive trade
person in such circumstances). As a sensible matter, with the increasing complexness of product, injuries,
and medical aid (which created several erstwhile fatal injuries survivable), it's quite tough and big-ticket
task to search out and retain smart skilled witnesses World Health Organization will establish the quality
of care, breach, and feat.

Q8. What is consumer Protection?

Ans. In addition to the breach of guarantee and strict liability claims, many countries have enacted client
protection statutes providing for specific remedies for a range of product defects. Statutory remedies area
unit usually provided for defects that just render the merchandise unusable (and thus cause economic
injury) however don't cause physical injury or harm to alternative property; the "economic loss rule" means
strict liability is usually inaccessible for product that harm solely themselves. the most effective renowned
samples of client protection laws for product defects area unit lemon laws, that became widespread as a
result of vehicles area unit usually associate degree yank citizen's second-largest investment when
shopping for a home.

Q9. Who are responsible for the damage of the product?

Ans. Under the consumer protection act (CPA), the 'producer' of a product is chargeable for any defects.
The producer is that the manufacturer of the finished product or of a element of the finished product, or
somebody accountable for associate degree industrial or alternative method to that any essential
characteristic of the merchandise is attributable . Liability may be obligatory on any party WHO holds itself
bent be the producer through the utilization of a reputation or trade mark, and somebody WHO foreign the
merchandise into the ecu Community.
As such, there could also be quite one party liable below the controller in respect of constant harm. Liability
is joint and a number of other, therefore the victim could sue any or all of those individuals. Liability can't
be excluded or restricted.

For product liability to arise, at some purpose the merchandise should are oversubscribed within the
marketplace. traditionally, a written agreement relationship, called "privity of contract," had to exist between
the person disjointed by a product and also the provider of the merchandise so as for the disjointed person
to recover. In most states nowadays, however, that demand not exists, and also the disjointed person
doesn't have to be compelled to be the emptor of the merchandise so as to recover. somebody WHO
foreseeably might are disjointed by a defective product will recover for his or her injuries, as long because
the product was oversubscribed to somebody.
Liability for a product defect might rest with any party within the product's chain of distribution, such as:

The product manufacturer

A manufacturer of element elements

A party that assembles or installs the merchandise

The distributor

The outlet that oversubscribed the merchandise to the buyer.

For strict liability to use, the sale of a product should be created within the regular course of the supplier's
business. Thus, somebody WHO sells a product at a cut-rate sale would in all probability not be liable in
an exceedingly product liability action.

Q10. What are unavoidably unsafe products?

Ans. By their nature, some merchandise merely can't be created safer while not losing their utility. for
instance, an electrical knife that's too boring to injure anyone would even be useless for its supposed
purpose. it's typically believed that, on such merchandise, users and shoppers square measure the most
effective equipped to reduce risk. Thus, whereas a product may not be deemed immoderately dangerous,
makers and suppliers of inevitably unsafe merchandise should offer correct warnings of the risks and risks
of their merchandise so shoppers will create abreast of selections relating to.

Q11. What are the common defenses to product liability claims?

Ans. A defense typically raised in product liability cases is that the litigator has not sufficiently known the
provider of the merchandise that allegedly caused the injury. A litigator should be ready to connect the
merchandise with the party(ies) to blame for producing or supply it. there's associate degree exception to
the current rule, called the "market share liability" exception, that applies in cases involving defective
medications. wherever a litigator cannot establish that of the pharmaceutical corporations that offer a
specific drug provided the drug he/she took, every manufacturer are control liable per its share of sales
within the space wherever the injury occurred.
Another defense a manufacturer would possibly raise is that the litigator well altered the merchandise once
it left the manufacturer's management, and this alteration caused the plaintiff's injury. A connected defense
is that the litigator victimized the merchandise in associate degree unpredictable means, which his/her
misuse of the merchandise cause the injuries alleged.

Although liability underneath the comptroller is strict, the producer contains a range of defenses on the
market if a claim is formed. it's a defense to show:

that the merchandise is flawed so as to fits domestic or European law;

the party the claim is being created against didn't offer the product;

that the merchandise wasn't factory-made or provided within the course of a business;

that the defect didn't exist at the time the merchandise was place into circulation;

if the party is being sued as a result of it factory-made a part - that the defect could be a defect

inside the finished product, and passed as a result of the means the finished product was designed or as
a result of directions given by the manufacturer of the finished product.
The comptroller conjointly includes a 'development risks' defense, that creates a defense if the "scientific
and technical knowledge" at the time the merchandise was factory-made wasn't such the producer of an
analogous product might need been expected to find the defect. this might be notably necessary in
relevancy innovative and advanced product. However, it's been argued that the expression of the united
kingdom law is a smaller amount strict than the expression of the law at European level, that deals with
the state of scientific and technical information usually instead of what a producer of comparable product
may be expected to find.

O12. What Is the effect of Negligence in product liability?

Ans. The proof of negligence in actus reus law needs that the litigant assert error or neglect on behalf of
the vendor to render safe, usable merchandise to the market. Sellers engaged in business of product sale
should deliver a functioning product that's not "unreasonably dangerous" throughout traditional use.
Product consumers United Nations agency ar injured physically or suffer property injury from defects could
sue for product negligence.
The duty to protect against negligence and provide a secure product applies to everybody within the chain
of distribution, together with manufacturer United Nations agency carelessly makes a defective product,
the corporate that uses the merchandise to assemble one thing elsewithout discovering a clear defect, and
also the merchant United Nations agency ought to exercise bigger care in providing merchandise

purchasable. Theseindividuals owe a obligation of care to anyone United Nations agency is probably going
to be separated by such a product if it's defective, together with the initialbuyer, that person's relations, any
bystanders, and persons United Nations agency lease the item or hold it for the buyer.
Additionally, the duty to exercise care involves all phases of obtaining a product to the customers or users.
the merchandise mustbe designed in such how that it's safe for its meant use. It should be inspected and
tested at completely different stages, created from the applicable materials, and assembled rigorously. The
product's instrumentation or packaging should be adequate. Themanufacturer should additionally furnish
adequate warnings and directions to be used with the merchandise.the vendor is taboo
frommisrepresenting the security or character of the merchandise and should disclose all defects.

Q13. What is a defective product and how does it impact product liability?
Ans. A 'product' will embrace product, electricity and also the part components of any product. wherever
a part of or staple incorporated into a finished product is flawed each the manufacturer of the part and also
the manufacturer of the finished product square measure doubtless liable.
A product is flawed for the needs of the accountant if its safety, as well as not solely the chance of private
injury however additionally the chance of harm to property, is "not like persons typically square measure
entitled to expect". A product won't typically be thought-about defective simply because a safer version is
later placed on the market.
In assessing the protection of the merchandise the court can take under consideration all of the
circumstances, specifically including:

all aspects of the promoting of the product;

the use of any mark in respect to the product;

instructions and warnings;

what would possibly moderately be expected to be through with the merchandise at the time the

merchandise was provided.

This last issue permits the court to require account of the 'state of the art' at the time of provide.

Q14. How are Injuries considered in product liability?

Ans.The issue of causation of injuries can be complicated, particularly if the product involved is only an i
ndirect or remote cause,or one of a number of causes. Regardless of the theory of liability, the plaintiff m
ust prove that the product was defectivewhen it left the hands of the defendant and that the defect was th
e cause of injury. These issues are ordinarily QUESTIONS OFFACT to be decided by the jury.
When the evidence indicates that an injury might have been precipitated by several causes, the question
becomes whetherthe cause for which the defendant is liable was a substantial factor in bringing about th
e injury. A defendant is notnecessarily liable if he is responsible for the last cause or the immediate caus
e of the injury. For example, a person whowas injured by a cooking pot that fell apart when the person re
moved it from the stove might not have to show that a defectin the pot handle was the only possible expl
anation for the accident. The jury could still properly consider whether a defectwas a concurring cause of
the accident, even if they found that the plaintiff misused the pot by handling it too roughly.
.

Q15. What is the Risk factor involved?

A manufacturer has the duty to create the merchandise as safe as doable. If the manufacturer
cannot do therefore, he has the obligation to adequately warn users and patrons of the
risks that exist. The construct of a fairly safe product extends to all dangers probably to
arise once the merchandise is getting used commonly or during a manner that may be
anticipated, even though it's not the purpose that it had been sold . as an example, a
manufacturer may foresee {that therefore me one that somebody} is probably going to
square on a table and might be needed either to create it sufficiently sturdy and stable
for folks to try and do so while not sustaining injury or to warn customers to not stand on that.
No liability is extended to a manufacturer if a litigator was thwarted as a result of he or she
had unreasonable hopes for a particular product. Frequently, however, a consumer's
expectations area unit clearly affordable however don't seem to be met. as an example, none
expects to

search

out defective

brakes during

a new

automobile.

In some instances, a defect won't be inherent within the product, however a shopper ought
to remember that care is required. An average adult needn't be warned that knives cut, that
dynamite explodes, or that electrical appliances mustn't be used in the shower.

A shopper WHO ignores hazards won't reach associate degree action alleging product
liability. However, many manufacturers print warnings regarding commonsense hazards to
produce

super

imposed protection

from

a causa.

Traditionally, a private should be a minimum of as careful as a fairly careful person.

Increasing recognition has been given, however, to a lot of realistic standard
the sometimes careless shopper. Courts area unit currently less inquisitive about however
obvious a danger is and a lot of involved with discovering how serious the chance is and the
way without

delay it might have

been

avoided.

A shopper WHO clearly misuses a product cannot recover if associate degree injury
results. as

an

enamel remover

example, an
is

for

individual WHO disregards

external

use solely cannot

printed

blame

warning

the

that nail

manufacturer for

creating associate degree imperfect product if he or she ingests it. Additionally, the buyer is
precluded from recovery if he or she continues to use a product that is clearly dangerous. The
idea is that the buyer has assumed the chance. This rule applies, however, solely to obvious
defects and doesn't establish a obligation for shoppers to scrutinize each product they
purchase.
Whether

a shopper has

assumed

responsibility

degree clearly dangerous

product

or misused a

on WHO the

probably

going to

user is

for exploitation associate

comparatively safe
be.

The

product

classic

depends

example

is

children's wear, that typically should be at least somewhat flame-resistant, as a result

of youngsters area unit less able to appreciate the danger of accidental fires.
Q16. What are the various Unavoidable Dangers in product liability?
Ans.

Although makers and

sellers

have a

requirement to

require precautions and

supply adequate warnings and directions, the public will still acquire product that square
measure inevitably unsafe.

A merchant isn't control

strictly responsible

for providing the

general public with a product that's required and needed in spite of the potential risk of
danger. Pharmaceuticals illustrate this principle because all of them have the potential to
cause serious hurt if used immoderately.
dangers

presents

The duty to warn customers of unavoidable

special issues if bound people

square

measure doubtless to

suffer sensitivity. The law considers Associate in nursing allergic reaction to be a reaction
suffered by a minority of individuals that's triggered by exposure to some substance.
Courts wont

to reject

on sensitivity,

reasoning

that the

merchandise was fairly safe which the injury was caused by a defect peculiar to the individual.

That

approach

has

use Associate

been

in

abandoned,

nursing

with makers providing

clear

careful directions on

warnings regarding doable symptoms

that counsel an aversion.

Q17. Compare the Three Types of Product Liability Claims

Ans.

Claims

involving

pharmaceutical medication offer a helpful approach of examination the 3 kinds

of product

liability claims. If you're hors de combat as a result of the actual bottle of cough syrup you
acquire happens to contain many drops of arsenic that fell into it out of the blue at
the manufactory wherever it absolutely was created, your claim would be supported a
producing defect.
By comparison, if taking that very same whole of untampered-with cough syrup caused you
to suffer a coronary failures as a result of its traditional ingredients, your claim would
be supported a style defect.
Finally, if the cough syrup was created properly and is mostly safe to be used, however you
were hors

de

combats

result

of you

combined

it

with Empiric and

therefore

the label didn't warn that such a mix is dangerous, your claim would be supported a failure to
warn.
By understanding these variations, you may higher be ready to determine your product
liability claim and properly present your case in court.

Q18. How long are producers liable for?

Ans. The basic limitation amount for claims underneath the accountant is 3 years from the
date of

injury or

injury.

alternate amount of 3 years

However,
from

since harm might

the

not be at

date once the

once apparent, an

producer

knew

or may fairly have famous - of the claim, is provided. Since a product might stay in
circulation for

several

years,

merchandise was place into circulation.

claim can't

be created over 10 years when the

Liebeck v. McDonald's Restaurants

The famous case of Liebeck v. mc Donalds restaurant, Stella Liebeck, a 79-year-old woman
from Albuquerque, New Mexico, on February 27, 1992, ordered a cup of coffee from the
drive-through window of a local McDonald's restaurant located at 5001 Gibson Boulevard
Southeast costing 49-cent. Liebeck was in the passenger's seat of a 1989 Ford Probe which
did not have cup holders, Liebeck placed the cup between her knees and pull the far side lid
to add cream and sugar in the coffee when she spilled all the coffee on her lap. In the
process, she was wearing sweatpants of cotton which absorbed the coffee and held it
against her skin, affecting her thighs and area near thigh.
She then was taken to the hospital, where Doctors determined that she had suffered thirddegree burns 6% of her skin and lesser burns over 16% of skin. She was admitted in the
hospital for 8 days while she underwent skin grafting. During this time, she lost 20% of her
body weight equals 9 kg, reducing her to 38 kg. After discharge from hospital she was then
intensive care from her daughter for 2 weeks. Liebeck was partially disabled for 2 years.
To cover her actual and anticipated expenses Liebeck tried to settle the case with
McDonald's for $20,000. Her medical expenses earlier were totaled $10,500 and anticipated
expenses for future medical expenses were determined approximately $2,500; for a total of
approximately $18,000 which includes are daughter loss of income. For which only $800
were offered by McDonalds. Liebeck retained Texas attorney Reed Morgan only When
McDonald's refused to raise its offer. Morgan then filed suit in New Mexico District Court
accusing McDonald's in the name of "gross negligence" for selling coffee that was
"unreasonably dangerous" and "defectively manufactured". Just before the trail McDonald's
refused Morgan's offer to settle for $90,000. Morgan again offered to settle for $300,000,
and for $225,000, but the company refused these final pre-trial attempts to settle. From
August 817, 1994 the trial took place, infrontof New Mexico District Court Judge Robert H.
Scott. During the case, Lie becks found that McDonald's required to hold coffee at 180190
F. At 190 F the coffee can cause a third-degree burn in 2 to 7 seconds. Liebeck's argued
that coffee should never be served hotter than 140 F, Liebeck's lawyers presented the jury
with evidence that 180 F coffee like that McDonald's served may produce third-degree
burns in about twelve to fifteen seconds. Lowering the temperature to 160 F would increase
the time for the coffee to produce such a burn to twenty seconds. Liebeck's argued that
these extra seconds could provide adequate time to remove the coffee from skin where
coffee spilled, which May preventing burns. McDonald's defend themselves by giving the
reason for serving such hot coffee in their drive-through windows is that those who
purchased the coffee are mainly commuters who wanted to drive long distance with the

coffee for which the high initial temperature should be so that the coffee will remain hot
during the trip. But still the company's research showed that many customers intend to
consume the coffee immediately while driving.
Many other documents obtained from McDonald's showed that from 1982 to 1992 the
company had received many complaints from people burned by McDonald's coffee to
varying degrees of severity, and most of them had settled their claims arising from scalding
injuries for more than $500,000. Company's quality control manager, Christopher Appleton,
testified that this number of injuries were not sufficient to cause the company to evaluate its
practices. He also argued that all foods hotter than 130 F always have a burn hazard, and
that restaurants had more pressing dangers to worry about.
On august eighteen 1994 a jury of twelve people had reached their finding of fact. Applying
the principles of neglect, the jury found that McDonald's was eightieth accountable for the
incident whereas Liebeck was 2 hundredths accountable for the fault. Although there was a
warning on the cup, the jury set that the warning wasn't massive enough or sufficient. They
awarded Liebeck US$200,000 as restitution, that was reduced to $160,000 by 20%.
Subsequently, they conjointly awarded her $2.7 million for exemplary damages.
The case is taken into account by some to be associate degree example of trivial
proceedings. Alphabet News has known as the case "the child of excessive lawsuits".
Dessert apple is known as the case "a significant and worthy lawsuit". McDonald's asserts
that the result of the case was the fluke, associate degreed attributed the loss to poor
communications and also the strategy by an unacquainted with insurance underwriter
representing a franchise. Liebeck's attorney, Reed Morgan, {and the |and therefore the |and
conjointly the} Association of Trial Lawyers of America also defended the end in Liebeck by
stating that McDonald's reduced the temperature of its occasional when the suit.
Detractors have argued that McDonald's refusal to supply over associate degree $800
settlement for the $10,500 in medical bills indicated that the suit was sorry and highlighted
the actual fact that Liebeck spilled the occasional on herself instead of any wrongdoing on
the company's half. They conjointly argued that the occasional wasn't defective as a result
of McDonald's occasional conformed to business standards, and occasional continues to be
served as hot or hotter these days at McDonald's and chains like Starbucks. They any
expressed that the overwhelming majority of judges World Health Organization take into
account similar cases dismiss them before they get to a jury. From 2002 to 2007, associate
degree upshot from a weekly news column by author ruttishCassingham resulted in an
exceedingly website known as the "Stella Awards", that speculated to provide awards to
folks that filed "outrageous and trivial lawsuits".

PRODUCT LIABILITY LAW IN INDIA

COUNTRY
In India, product liability law governs the liability of makers, wholesalers, distributors, and
vendors for injury to someone or property caused by dangerous or defective merchandise.
Product liability in Asian country is ruled by:
a) The Consumer Protection Act, 1986.
b) The Sales of Goods Act, 1930.
c) The law of Torts.
d) Special statutes pertaining to specific goods.
Previously, the Monopolies and Restrictive Trade Practices Act, 1969
(hereinafter mentioned because the MRTP Act) restricted provisions in respect of unfair
trade practices. The Act currently stands repealed and therefore the unfinished cases of
unfair trade practices are transferred to the National Commission found out beneath the
buyer Protection Act, 1986.
STATE
The State doesnt operate any schemes of compensation for particular products.

Responsible for product liability in India and claims

Any person who trades within the merchandise (manufacturers, importers, distributors,
wholesalers, etc.) is also created liable underneath Indian law.
As per the consumer Protection Act, the definition of dealer (Section 2(1) (q)) and
manufacturer (Section 2(1) (j)) is thorough and includes: any individual distributor sells or
distributes any merchandise for sale; manufacturers; assemblers; dealers; or any individual

distributor causes his or her own mark to be placed on any merchandise created or factorymade by the other manufacturer and claims such merchandise to be merchandise created
or factory-made by himself or herself.
Bearing in mind the law on privity of a contract, if a client finds a defect within the
merchandise, he or she typically sues the person from whom he or she has bought the
products. However, if the defect could be a producing defect, then the buyer might sue the
manufacturer alongside the vendor, notably underneath the law of wrongdoing. this is often
associate choice for the buyer.

CLAIM OF DAMAGE
Section 14(1) (h) states that the District Forum under the Consumer Protection Act can
require direct withdrawal of all hazardous goods from the market and direct compensation to
be paid to affected parties.
As per Section 27 of the Consumer Protection Act, if a trader fails or omits to comply with
any order of the District Forum, such person shall be punishable with a term of not less than
one month, but which may be extended to three years or a fine of 2,000 rupees, but which
may be extended to 10,000 rupees, or both. Also, Section 25 of the said Act empowers the
District Forum or State Commission or National Commission, as the case may be, to attach
property of the person who does not comply with its orders. If a person fails to pay an
amount as per an order passed by a district court, then such person may move an
application before the District Forum which shall issue a certificate to the collector of the
district, and such collector shall proceed to recover the said amount from such person as
arrears of the land revenue.

Under the Consumer Protection Act, as per Section 27, where a trader or a person against
whom a complaint is made or the complainant fails or omits to comply with any order made
by the District Forum, the State Commission or the National Commission, as the case may
be, such trader, person or complainant shall be punishable with: imprisonment for a term of
not less than one month, but which may be extended to three years; a fine, which shall not
be less than 2,000 rupees, but which may be extended to 10,000 rupees; or both. Criminal
sanctions may also be imposed under other statutes specifically providing for such
sanctions.

Q19. What are the acts that are Governing Product Liabilities?
Ans. Indian Penal Code 1860 :- The Republic of Indian Penal Code (IPC) is that the main
criminal code of India. it's a comprehensive code supposed to hide all substantive aspects
of Penal Code. The code was written in 1860 on the recommendations of initial law
commission of Republic of India established in 1834 underneath the Charter Act of 1833
underneath the billet of Thomas Babington First Baron Macaulay.

The objective of this Act is to produce a general Penal Code for Republic of India. The
Indian Penal Code, in its basic type, may be a document that lists all the cases and
punishments that an individual committing any crimes is susceptible to be charged with. It
covers any Indian national or an individual of Indian origin. The exception here is that any
quite military or the militia crimes can't be charged supported the Indian Penal Code. Military
further because the militia have a unique dedicated list of laws and also the Indian Penal
Code doesn't have the privilege to follow any a part of it. The Indian Penal Code additionally
has the ability to charge for associate degree crimes committed by an individual whom is
associate degree Indian national on any means that of transport happiness to India-an
Indian plane or an Indian ship.

The Food Adulteration Act 1954 :- The Ministry of Health and Family Welfare is liable for
guaranteeing safe food to the customers. Keeping this in sight, a legislation referred to as
"Prevention of Food Adulteration Act, 1954" was enacted. the target envisaged during this
legislation was to make sure pure and wholesome food to the customers and conjointly to
forestall fraud or deception. The Act has been amended thrice in 1964, 1976 and in 1986
with the target of plugging the loopholes and creating the punishments additional rigorous
and empowering customers and Voluntary Organizations to play a simpler role in its
implementation.

The subject of the hindrance of Food Adulteration is within the co-occurring list of the
constitution. However, in general, the social control of the Act is completed by the State/U. T
Governments. The Central Government primarily plays AN informatory role in its
implementation besides closing numerous statutory functions/duties assigned to that
beneath the assorted provisions of the Act.

Food Safety and Standards Act 2006 :- The Food Safety and Standards Authority of
Republic of India (FSSAI) has been created for providing down science based standards for
articles of food and to manage their manufacture, storage, distribution, sale and import to
make sure availableness of safe and wholesome food for human consumption. In a shell,
the Act takes care of international practices and envisages a vaulting policy framework and
provision of single window to guide and regulate persons engaged in manufacture,
marketing,
processing, handling, transportation, import and sale of food The Act is up to date,
comprehensive and intends to ensure higher client safety through Food Safety Management
Systems and setting standards supported science and transparency as additionally to
satisfy the dynamic requirements of Indian Food Trade and business and International
Trade. In case wherever there square measure affordable grounds to suspect that a food
might gift a risk for human health, then, betting on the character, seriousness and extent of
that risk, the Food Authority and also the Commissioner of Food Safety shall take
acceptable steps to tell the overall public of the character of the risk to health, distinguishing
to the fullest extent doable the food or form of food, the danger that it's going to gift, and the
measures that square measure taken or near to be taken to stop, scale back or eliminate
that risk; Where any food that fails to accommodates food safety necessities is a component
of a batch, lot or consignment of food of a similar category or description, it shall be
probable till the contrary is proved , that all of the food in this batch, heap or consignment
fails to comply with those necessities.

Drugs and Cosmetic Act 1940 :- The medication and Cosmetics Act, 1940 is associate
degree Act of the Parliament of Asian nation that regulates the import, manufacture and
distribution of medicine in Asian nation. The primary objective of the act is to confirm that the
medication and cosmetics sold in Asian nation area unit safe, effective and adapt to state
quality standards. The connected medication and Cosmetics Rules, 1945 contains
provisions for classification of medicine below given schedules and their area unit pointers
for the storage, sale, show and prescription of every schedule

The term "drug" as outlined within the act includes a good form of substance, diagnostic and
medical devices. The act defines "cosmetic" as any product that's meant to be applied to the
material body for the aim of beautifying or cleansing. The definition but excludes soaps. In
1964, the act was amended to incorporate piece of writing and Unani medication
The Section sixteen of the act defines the standards of quality for medication. The Section
seventeen defines "misbranding". A drug is taken into account mislabeled if it claims to be of
additional therapeutic worth than it really is. The manufacturer of such a drug could also be
asked to suspend manufacture of the drug below Section eighteen. Section twenty-seven
deals with faux and adulterate medication. The act needs that ingredients of the medication
ought to be written on the label.
Standards of weights and Measures Act 1976:- An Act to determine standards of weights
and measures, to control trade or commerce in weights, measures and alternative
merchandise that are sold or distributed by weight, live or variety, to provide
for matters connected thereupon or incidental to it.
BE it enacted by Parliament within the Twenty Seventh Year of the Republic of Bharat as
follows: -

PROVISIONS APPLICABLE to each.

1. (1) This Act could also be referred to as the Standards of Weights and Measures and
social control Act, 19.....

(2) It extends to the complete of Bharat.

(3) It shall acquire force on such date because the Central Government might, by
notification, appoint, and totally different dates could also be appointed for various -(a) Provisions of this Act;
(b) Areas,
(c) Categories of undertakings,
(d) Categories of products,
(e) Categories of weights and measures, or
(f) Categories of users of weights and measures,
Any reference in any such provision to the commencement of this Act shall be construed as
a regard to the approaching into force of that provision in such areas, or in respect of such
classes of undertakings, goods, weights and measures or users of weights and measures in
relevance that this Act has been brought into force.
Provided that the provisions of this Act (including the standards established by or
underneath this Act) shall acquire force within the State of Skkim on such date, not being
later than 5 years from the passing of this Act, because the Central Government might, by
notification, appoint, and totally different dates could also be appointed for various
provisions of this Act or for various areas or for various categories of enterprise or for
various categories of products, or for various categories of weights and measures or for
different categories of users of weights and measures.

The Indian Standards Institute Act 1952 :- In the twilight years of British decree Asian
country, once the country was long-faced with the big task of increase the commercial
infrastructure, it had been the establishment of Engineers (India), that ready the primary
draft of the Constitution of an establishment that might take up the task of formulation of
National Standards. This LED to the Department of Industries and provides supplying a
memoranda on 03 Sep 1946, formally saying the setting of a corporation referred to as the
Indian Standards Institution. The Indian Standards establishment (ISI) came into being on

the 06 Gregorian calendar month 1947 and in Gregorian calendar month 1947 Dr. Lal C.
Verman took over as its initial Director.

In the initial years, the organization targeting standardization activity. to produce the benefits
of standardization to common shoppers, the Indian Standards establishment started
operational the Certification Marks theme below the Indian Standards establishment
(Certification Marks) Act, 1952. The Scheme, that was formally launched by ISI in 1955-56,
enabled it to grant licenses to makers manufacturing product in conformity with Indian
Standards and to use ISI Mark on their product. to fulfill the wants of the Certification Marks
theme, the nucleus of a laboratory was started in 1963. whereas the merchandise
certification was being operated below the Indian Standards establishment (Certification
Marks) Act, 1952, the formulation of standards and alternative connected work weren't ruled
by any legislation. A Bill with this objective was so introduced within the Parliament of
twenty-six Nov 1986.

Bureau of Indian standards (BIS) came into existence, through act of parliament dated
twenty-six Nov 1986, on one Gregorian calendar month 1987, with a broadened scope and
a lot of powers seizing the workers, assets, liabilities and functions of erstwhile ISI. Through
this alteration over, the govt. envisaged building a climate for quality culture and
consciousness and bigger participation of shoppers in formulation and implementation of
national standards.

The Bureau may be a Body company consisting of twenty-five members representing each
Central and State governments, Members of Parliament, industry, scientific and analysis
establishments, shopper organizations and skilled bodies; with Union Minister of shopper
Affairs, Food and Public Distribution as its President and with Minister of State for shopper
Affairs, Food and Public Distribution as its Vice-President.

The Bureau of Indian Standards Acts 1986 :- The Bureau of Indian Standards (BIS) is
that the national Standards Body of India operating beneath the aegis of Ministry of client

Affairs, Food & Public Distribution, Government of Asian nation. it's established by the
Bureau of Indian Standards Act, 1986 that came into result on twenty-three Dec 1986. The
Minister to blame of the Ministry or Department having body management of the BIS is that
the ex-officio President of the BIS. The organization was at one time the Indian Standards
establishment (ISI), found out beneath the Resolution of the then Department of Industries
and provides No. 1 Std. (4)/45, dated three Sept 1946. The Directorate for Inter-Services
Intelligence was registered beneath the Societies Registration Act, 1860.
One of the key functions of the Bureau is that the formulation, recognition and promotion of
the Indian Standards. As on thirty-one August 2013, 19067 Standards developed by BIS,
square measure effective. These cowl necessary segments of economy, that facilitate the
business in upgrading the standard of their merchandise and services.
BIS has known fourteen sectors that square measure necessary to Indian business. For
formulation of Indian normal, it's separate Division Council to manage and supervise the
work. The Standards square measure often reviewed and developed in line with the
technological development to take care of harmony with the International Standards. All
foreign makers of merchandise UN agency shall export to Asian nation square measure
needed to get a BIS product certification license. Towards this, BIS launched its Product
Certification theme for overseas makers within the year 1999. beneath the provisions of this
theme, foreign makers will obtain certification from BIS for marking their product with BIS
normal Mark. If or otherwise, the foreign manufacturer has not signed associate MoU with
BIS, it's to line up a liaison workplace in Republic of India with the permission of depository
financial institution of India. Otherwise, associate authorized representative or agent has to
be appointed by the foreign firm.

ROLE OF A NGO

What is a NGO?

A non-governmental organization (NGO) is a not-for-profit organization that is independent

from states and international governmental organizations. They are usually funded by
donations but some avoid formal funding altogether and are run primarily by volunteers.

How does it work?

A NGO gets funding from various sources like UNICEF, big firms, famous celebrities, CEOs
etc. to work for a social cause without any intent of earning profit. They work for the interest
of the people by protecting their rights and fighting in line of Law.

What are the types of NGO?

There are different types of NGO which differ in their field of application. There are some
which work for animal rights some work for human rights and there are many fields in both
of these fields, similarly product liability laws are protected and cases are filed by NGOs to
protect the rights of people.

What are some famous incidents in product liability issues?

Brad Pitts NGO MAKE IT RIGHT FOUNDATION filed a case when they made homes for
people were destroyed by hurricane. The wood used started rotting and the homes were
useless after a point of time so the firm responsible was held responsible.

ROLE OF BUSINESS/INDUSTRY ASSOCIATIONS

How can businesses help?

If business adhere to the guidelines of the government appointed organizations for product
manufacture and functioning the margin of error will reduce and consumers will be satisfied.
The main issue arise in case of high sensitivity products where people can get hurt
consequently the industries for such products should adopt most efficient and effective
technology available for production and re-check the product before introducing to the
customer.

A product has a safety error if it does not meet the level of safety the public is generally
entitled to expect. While the expected level of safety will vary from case to case, it is for a
court to determine whether a product has a safety defect.

Minimising the risk under the product liability generally requires no more of manufacturers,
importers and retailers than responsible business practice. A culture of safety is an
important attribute of any responsible organisation and should include being aware of what
happens when their product is in the hands of the consumer. A manufacturer's quality
assurance system, design, production, record keeping and marketing procedures as well as
customer information material can promote the safety of its products with consumers.

A product's design is inherently dangerous or defective. Defective design claims do not arise
from some error or mishap in the manufacturing process, but rather involve the claim that an
entire line of products is inherently dangerous, regardless of the fact that the injury-causing

product was perfectly made according to the manufacturer's specifications.

Examples of a design defect include:

a particular model of car that has a tendency to flip over while turning a corner
a type of sunglasses that fail to protect the eyes from ultraviolet rays, or
a line of electric blankets that can electrocute the user when turned on high.
Here again, the injury must have been caused by the defective design. If you accidentally
crash into another vehicle while driving one of the flip-prone cars
mentioned above, you would only have a design defect claim if you could show that you
crashed because the car was in the process of flipping over while turning.

ROLE OF LEGAL EDUCATION AND AWARENESS

Why legal education is important?

It will help in helping consumers in protecting and defending themselves from products that
prove to be dangerous and at the same time, having the proper business or chain of
businesses be held accountable for putting into the marketplace products should have
known were faulty in the first instance.

Legal education aims at developing skills and competence, the basic philosophies and
ideologies for creation and maintenance of just It sensitize society to identify its problems
and ensure social and economic justice through rule of law and to eradicate injustice,
poverty, corruption and nepotism from the society. The legal education stands for
enhancement of human sensibility and injects a sense of protecting human liberty and
equality before law. The curriculum of legal education should be thought of in terms of its
objectives.

An eminent justice S.B.Majumdar pointed out that one aspect of legal education wants to
impart appropriate training programme to make available through professionals. It needs to
enable law student to think like to make him familiar with the basic concepts and principles
of law, and make him to learn the basic skills which are the tools of every lawyer. A well

trained will help the court in the quick and proper disposal of cases, doing justice to the
litigating public and thus help his client too. The main aim of legal education at present day
should be to give to the rising generation the accumulated knowledge of the management of
the legal process. The student should be enabled to gain a comprehensive picture of his
legal system. The basic aim should be more to inculcate knowledge of the principles than
detailed rules.

It goes without saying that legal education has an important role to play in the establishment
of law-abiding society. Excellence in legal education and research is extremely important,
because it will help shape the quality of the rule of law. The invaluable experiences that
legal education can offer to future lawyers are several. Primary among them is exposure. To
a wide range of legal subjects like procedure, contracts, crudes criminal law, evidence,
constitutional law, corporate law, property law, administrative law, jurisdiction, labour law,
commercial law and on and on and on. These are important for the i practice of law.

COCLUSION

After studying the laws regarding the product liability laws we as a group experienced the
power and significance of justice in a society. The different scenarios in the world related to this
problem showed how the law is protecting the different walks of people in this world.
We as a group has come to a conclusion that this project helped in intelligent practice of law
and made us more aware of our rights as a citizen. We will apply these laws in future and try to
help ourselves and others.

Plagiarism Report

References: 1.

https://en.wikipedia.org/wiki/Product_liability

2.

http://injury.findlaw.com/product-liability/what-is-product-liability.html

3.

http://injury.findlaw.com/product-liability.html

4.

https://www.law.cornell.edu/wex/products_liability

5.

http://legal-dictionary.thefreedictionary.com/product+liability

6.

https://www.nolo.com/legal-encyclopedia/types-of-defective-product-liability-30070.html

7.

http://www.out-law.com/topics/commercial/supply-of-goods-and-services/product-liability-

under-the-consumer-protection-act/
8.

http://tort.laws.com/products-liability