Product Liability Terms and Definitions

Service bulletin Allows dealers to repair the problem at no cost to the customer even if the warranty has expired. A service bulletin notifies the dealer of the problem and how to resolve it. Design Defect If the actual design of a product makes it unreasonably dangerous, then every product with that design is defective. For example, the poor design of the Ford Pinto is what made it defective, and because the design was common to all Pintos, they were all defective in design. Unanticipated, Unforeseeable, or Unintended Use The product was NOT used in the way it was intended to be used. Or, the manufacturer had no way of knowing that a certain person could access the product. Distributor Retailer and all middlepersons (learned intermediary, R3d Torts) Warranties Fitness and merchantability The two most important warranties created by U.C.C. Article 2 are the warranty of merchantability (2-314) and the warranty of fitness for a particular purpose (2-315). The warranty of merchantability is a promise that the goods are fit for the ordinary purpose for which goods of that type are used. Assumption of Risk This means that you knew of the risks in using the product, but you decided to use the product anyway. Product Safety Recalls Sometimes sale of the item is banned. A manufacturer may establish a recall program that asks consumers to return the defective item for replacement or repair. Punitive Damages This term refers to damages awarded to a plaintiff over and above compensatory damages, designed to punish the defendant for particularly outrageous and malicious conduct, and to serve as a deterrent to others. Unjust Enrichment The general principle of unjust enrichment is that one person should not be able unjustly to enrich himself at the expense of another. Express Warranties Promises stated outright by the manufacturer or seller. They are usually in advertisements or on a product’s packaging.

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	Did You Know?
	At the end of 2002, CPSC had reports of 5,239 ATV related deaths Deaths and injuries associated with all-terrain vehicles (ATVs) have shown an increasing trend in the last several years. This was an increase of 698 deaths from 2001. These additional reported deaths occurred during the years 1999 to 2002. Of these reported fatalities, about one-third were children under 16 years old. Fourteen percent were under 12.