Product Liability Terms and Definitions

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. Merchant A person who deals in the goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction or to whom such knowledge or skill may be attributed by his employment of an agent or broker or other intermediary who by his occupation holds himself out as having such knowledge or skill. 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 Implied Warranties Not stated outright by the manufacturer or the seller. For example, you might have an Implied Warranty of Merchantability, which promises that your product is good for its ordinary purpose. 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 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. Summary Judgment In a civil action, any party may make this procedural motion, after the Discovery phase, to dispose of the suit before trial has begun. Inadequate Warning Sometimes, a manufacturer doesn’t warn the user of a product’s hazards. Simply putting a warning in a little instruction book or label might not be enough. The warning must adequately inform the user of the hazards. 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. Manufacturing Defect When one particular product out of many like products has a flaw that makes it unreasonably dangerous, it is said to have a manufacturing defect.

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	Did You Know?
	CPSC staff collects hospital patient injury information They collect data from each NEISS hospital for every emergency visit involving an injury associated with consumer products. From this sample, the total number of product-related injuries treated in hospital emergency rooms nationwide can be estimated.