Product Liability Terms and Definitions

Prescription Drug Any donated, previously dispensed, prescription drug Shall not have been adulterated, misbranded, or stored under conditions contrary to standards established by the United States Pharmacopoeia or the product manufacturer. Online Pharmacies If an online pharmacy requires you to waive your legal rights in order to do business with it, reconsider your purchase. A waiver of liability should not be necessary to receive your drugs. 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. 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. 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. 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. Seller A person who sells or contracts to sell goods. UCC 2-103(1)(d) 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. 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.

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	Did You Know?
	NEISS stands for CPSC’s National Electronic Injury Surveillance System 2003 NEISS estimates have been produced from a sample of 98 hospitals, including children’s hospitals. Information from NEISS is available to the public through CPSC’s National Injury Information Clearinghouse (phone: 301-504-7921) and online