Sophia Business Law Unit 2 Milestone 2
Latest Questions And Answers
, lOMoAR cPSD| 7670600 UNIT
2 — MILESTONE 2
RETAKE
17/21 that's 81%
1
A manufacturer of an electric meter that included surge protectors to
prevent damage to the meter from overloads is sued exclusively for
strict product liability by an electric company after the surge protectors
failed and damaged the electric meters. The manufacturer defends the
claim of strict product liability on the basis that the defect in the
product only damaged the product itself and there were no personal
injuries.
How strong is this defense by the manufacturer?
Strong, unless the electric company
can provide a reasonable alternative
design to the meter that would have
mitigated the risk of the surge
protectors failing.
, Weak, because strict product liability
applies to defective products even
when they do not cause personal
injuries and only cause economic loss
to the product itself.
lOMoAR cPSD| 7670600 indication
that the electric company
was aware of the product's defective
surge protectors and elected to use
the meters anyway.
Strong, because strict product liability
does not allow for economic loss
occasioned from a defect in a
product that only causes damage to
the product itself.
RATIONALE
The economic loss rule generally bars recovery in tort for purely
economic loss claims where there is no personal injury.
CONCEPT
Problems with Strict Products Liability
Report an issue with this question
2
Latest Questions And Answers
, lOMoAR cPSD| 7670600 UNIT
2 — MILESTONE 2
RETAKE
17/21 that's 81%
1
A manufacturer of an electric meter that included surge protectors to
prevent damage to the meter from overloads is sued exclusively for
strict product liability by an electric company after the surge protectors
failed and damaged the electric meters. The manufacturer defends the
claim of strict product liability on the basis that the defect in the
product only damaged the product itself and there were no personal
injuries.
How strong is this defense by the manufacturer?
Strong, unless the electric company
can provide a reasonable alternative
design to the meter that would have
mitigated the risk of the surge
protectors failing.
, Weak, because strict product liability
applies to defective products even
when they do not cause personal
injuries and only cause economic loss
to the product itself.
lOMoAR cPSD| 7670600 indication
that the electric company
was aware of the product's defective
surge protectors and elected to use
the meters anyway.
Strong, because strict product liability
does not allow for economic loss
occasioned from a defect in a
product that only causes damage to
the product itself.
RATIONALE
The economic loss rule generally bars recovery in tort for purely
economic loss claims where there is no personal injury.
CONCEPT
Problems with Strict Products Liability
Report an issue with this question
2
