1. PRODUCT LIABILITY
HAI HA, Hoang
QUAN, Ngo Duc
TRUNG, Le Quang

2. Outline
1, Introduction
2, Theory of product liability
3, Types of liability
4, Breach of warranty
5, Neglience
6, Strict liability
7, Consumer protection
8, Applied Case: MacDonald’s coffee lawsuit.

3. Introduction
• Putting defective products into marketplace
• Assume liability for injuries that product cause

4. Theories of Product Liability
Four different theories:
• Neglience
• Breach of warranty
• Strict liability
• Consumer protection

5. Types of liability
Three major types of product liability claims:
• Manufacturing defect
• Design defect
• Marketing defect

6. Types of liability
• Manufacturing defects:
- Occurrence in manufacturing process
- Poor-quality materials
• Design defects:
- Dangerous or useless product design
• Marketing defects:
- Dangers mitigated through adequate warnings

7. Breach of warranty
• Express or implied statements by seller
• Three types of warranties:
+ Breach of an express warranty
+ Breach of an implied warranty of merchantability
+ Breach of an implied warranty of fitness for a
particular purpose

8. Breach of warranty
• Express warranty:
- An affirmation made by manufacturer
- Expressed by word spoken or writtent contract
• Implied warranty of merchantability:
- Standards of quality and reasonable safety
• Warranty of fitness for particular purpose:
- Particular requirement to select suitable goods

9. Negligence
Apply to:
• Manufaturer, careless defect
• Company, assemble without discover defect
• Vendor, not exercise

10. Negligence
Persons receive cares:
• Initial buyer
• Family member
• Bystanders
• Person, hold from purchasers

11. Negligence
Company’s duties:
• Designs, impected
• Adequate warning , directions
• Sellers, illegal, safety or charaters.

12. Strict liability
• Product concentration
• Negligence disadvantage : plantiff, prove,
breach under care standard
• Difficult and expensive finding

13. Consumer protection
• Prohibit unconscionable acts
• Render product itself, not other property

14. Applied case
The
McDonald’s
coffee lawsuit

15. Product Liability
• What happened?
• McDonald’s Defences
• Conviction.

16. Legal Result
• McDonald’s was charge of
• Product defect
• Breach of the implied warranty of
merchantability
• Breach of implied warranty of fitness for
particular purpose
• Court trial compesation: $2.7 Million
• Real compensate: 640,000$

17. Subsequent Actions

18. Thank you for
you attention !