Product Liability Terms and Definitions

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. 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. 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. Marketing Defect The failure to adequately warn of a potential risk of harm that is known or should have been known about a product or its foreseeable use. 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. 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. 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. Advertising The act of calling something to the attention of the public especially by paid announcement. Punitive Damages This term refers to damages awarded to a plaintiff over and above compensatory damages, designed to punish the defendant for particularly outrageous and malicious conduct, and to serve as a deterrent to others. Asbestos or other asbestos-containing products Products that have liability lawsuits and Class action lawsuits, asbestos is considered dangerous to your health. This product is heavily regulated for use and removal.

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	Did You Know?
	2.2 million “SMC” brand oscillating floor fans can be dangerous Floor fans by SMC Marketing Corp. and Home Depot U.S.A., Inc. The recall includes 18-inch, pedestal floor fans with model number SR-18 or SP-18. The damage to the cord can result in a short circuit and possible ignition of the plastic case, posing a fire hazard. CPSC is aware of 31 incidents in which the cord on these fans was damaged, which resulted in smoke and fires. At least nine of these incidents resulted in substantial property damage.