Product Liability Terms and Definitions

Marketing Defect The failure to adequately warn of a potential risk of harm that is known or should have been known about a product or its foreseeable use. Extended warranty A service contract is sold separately and is a promise to pay for certain repairs or services. Service contracts are usually high-profit add-ons, costing hundreds to more than $1,000. Goods All things (including specially manufactured goods) which are movable at the time of identification to the contract for sale other than the money in which the price is to be paid Lead Poisoning Paints & outdoor play products, since lead poisoning symptoms does not break down naturally, it can be present in your home's dust, paint or soil, or in your drinking water or your food until it is removed. Torts law A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident. Strict Products Liability The legal liability of manufacturers and sellers to compensate buyers, users, and bystanders for damages or injuries suffered because of defects in good purchase or a tort which makes the manufacturer or seller liable if the product has a defective condition that makes it unreasonably dangerous. Lemon laws Help protect consumers by requiring a refund or replacement if a substantial problem is not fixed within a reasonable number of attempts or if the vehicle has been out of service for a certain number of days 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. Dispute Resolution Programs During mediation, both sides involved in the dispute meet with a neutral third party and create their own agreement jointly. In contrast, in arbitration the third party decides how to settle the problem. 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.

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	Did You Know?
	2.2 million “SMC” brand oscillating floor fans can be dangerous Floor fans by SMC Marketing Corp. and Home Depot U.S.A., Inc. The recall includes 18-inch, pedestal floor fans with model number SR-18 or SP-18. The damage to the cord can result in a short circuit and possible ignition of the plastic case, posing a fire hazard. CPSC is aware of 31 incidents in which the cord on these fans was damaged, which resulted in smoke and fires. At least nine of these incidents resulted in substantial property damage.