Commercial Law

Features

Part One of this series discussed the impact of consumer expectations with respect to electronic stability control systems in the auto industry. This month's installment addresses unreasonable expectations with respect to antilock braking systems.

Features

The birth of modern-day product liability law was arguably delivered in 1963 by the California Supreme Court in <i>Greenman v. Yuba Power Products,</i> 59 Cal. 2d 57 (1963). Today, product liability law is commonly understood to mean that all participants in the chain of distribution of a defective product are strictly liable for injuries caused by that product. Strict liability generally means that any seller in the distribution chain is liable if the product is defective, even if the seller was not responsible for making that product defective. There are a variety of different sellers in today's global economy that partially or completely assemble or manufacture their products and can be held responsible for defects even if not sued in the original action. Sellers in the distribution chain are vast and include manufacturers, suppliers, distributors, wholesalers, and retailers. Those lower in the distribution chain (<i>i.e.,</i> those closer to the ultimate purchaser of the product) often seek defense and indemnity from upstream participants.

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Traditional tort law principles provide that product manufacturers and sellers have a duty to warn of hidden risks that pose a danger to product users. As a corollary, courts generally hold that manufacturers and sellers have no duty to warn consumers of obvious dangers inherent in the product. Consequently, most judges have left to the jury the question of whether the danger of injury from a product is obvious. Against this backdrop, a recent decision has cast doubt on the accepted notion that obviousness is necessarily a question for the jury. Specifically, the Supreme Court of Michigan held in <i>Greene v. A.P. Products, Ltd.</i>, 717 N.W.2d 855, <i>reh'g denied</i>, 720 N.W.2d 748 (Mich. 2006) that, as a matter of law, hair oil posed an open and obvious danger to consumers that negated any duty to warn that the product could kill if ingested or inhaled.

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News about lawyers and law firms in the franchising industry.

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Highlights of the latest franchising cases from around the country.

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This is the conclusion of an interview with Steven Toporoff, Franchise Program Coordinator, Federal Trade Commission ('FTC') about the revisions to the Franchise Rule. Toporoff continues his remarks about earnings information contained in the New Rule, and he discusses how the FTC is reaching out to the franchise community and consumers in order to explain the provisions of the New Rule.

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Editor-in-Chief Stan Soocher tells you what's going on in the industry.

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What you need to know.