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15.2 Review Activity- Product Liability

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Product LiabilityUnder this type of law, someone who is injured from a product's unsafe or defective condition may recover damages. Manufacturers, sellers, and suppliers can all be held accountable.
Strict liabilityThis makes manufacturers or suppliers responsible for selling goods that are unreasonably dangerous even when the manufacturer or seller has not been negligent.
Consumer Product Safety ActThis federal act protects you from unreasonable risk of injury while using consumer products that are sold in interstate commerce.
Defects in products are divided into these 3 categories:Manufacturing defects(e.g., a ladder with missing rivets), Poor design (e.g., a toy with small parts that can easily be removed and swallowed), and inadequate instructions and warnings about the safe use of the product (e.g., A chain saw that does not include instructions about using the safety guard.
The Food, Drug, and Cosmetic ActThis federal law prohibits the manufacture and shipment of food, drug, cosmetic, or health-related device that is injurious, adulterated, or misbranded.
An "adulterated" food or drugcontains any substance that will reduce its quality or strength below minimum standards.
A "misbranded" food or drugis a food or drug that's label is false or misleading.
The Delaney AmendmentUnder this law, the Federal government has the right to remove from the market any food or additive shown or believed to cause cancer in humans or animals. It is part of the Food, Drug, and Cosmetic Act
Intrastate SalesSales within only one state. State law would apply to these products because the federal government has no control over goods manufactured and sold only within the boundaries of one state.
Offices of Consumer AffairsMany state and local governments have these to educate consumers and help protect them against fraud.
The Consumer Product Safety CommissionThis federal organization establishes safety standards for consumer products and has the power to recall unsafe products and to impose fines on violators.
Better Business BureauA nongovernment agency that hears consumer complaints at the local and state levels.
BBB's missionTo promote highly ethical relationships between businesses and the public.


Business Education
Tolland High School
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