Legal Foundations for Product Liability Legislation
Product liability law is based on both tort and contract laws. Furthermore, many state legislatures have passed product liability statutes that specify the scope of product liability inside the state.
Tort law
Torts are civil wrongs that the law recognizes as grounds for a lawsuit. These wrongs cause pain or harm, which serves as the basis for the aggrieved party’s claim. While certain torts are also crimes punishable by imprisonment, the primary goal of tort law is to offer relief for damages incurred while discouraging others from committing similar acts. The damaged party may seek an injunction to prevent further tortious behavior or monetary damages. The injured party may collect a variety of damages, including loss of earning capacity, pain and suffering, and reasonable medical expenditures. They encompass both current and future anticipated losses.
Contract law
Contract law is concerned with regulating agreements signed by parties. It contains methods for outlining the rights of product purchasers and suppliers. Contract law, like tort law, is derived from state law.
Sales law, a branch of contract law, regulates commercial transactions. Except for Louisiana, all states have incorporated the Uniform Commercial Code (UCC) into their state laws to facilitate the orderly sale of commodities between residents of other states. The Uniform Code Congress, a private organization, devised the UCC to unify diverse state laws. Because the UCC is a model law, governments can make amendments to the law as they see fit.
Most states have implemented Article 2 of the UCC, which governs the sale of goods. The most essential product liability parts are the implied and express warranties of merchantability in the sales of goods (§§ 2-314 and 2-315).
State Product Liability Statutes
Product liability is a state issue. Many states have developed legislation addressing product liability. This law could address specific issues, such as statutes of limitation or repose, or it could include all product liability actions in the state. There may also be various more state statutes, such as general tort statutes governing joint and several responsibilities, limitations on non-economic damages, or blame schemes.
Federal law
There is no federal product liability legislation, but federal laws may be applicable in product liability action. In 1979, the United States Department of Commerce suggested a model unified product liability legislation. This statute was intended to serve as a blueprint for state legislatures to use when enacting their own state product liability laws.