What are the exceptions to product liability?

Product liability law generally holds manufacturers, distributors, and sellers responsible for harm caused by defective products. However, there are several well-recognized exceptions and defenses that may limit or exclude liability in certain cases. Businesses that understand these exceptions can better manage risk and reduce exposure to costly legal claims.

Key Points

• Strict liability does not always apply; there are legal defenses that can negate or reduce liability.

• Key exceptions include assumption of risk, product misuse, contributory or comparative negligence, statute of limitations, and government contractor defense.

• Some exceptions are specific to products like medical devices (learned intermediary doctrine) or component suppliers (bulk supplier doctrine).

• Exceptions and their impact vary by jurisdiction and specific case facts.

• Businesses should know these defenses to structure contracts, warnings, policies, and insurance effectively.

Exceptions and Defenses in Product Liability

1. Assumption of Risk

Assumption of risk means that the consumer was aware of the danger posed by a product, understood it, and voluntarily accepted it. If proven, this exception may bar or reduce liability for the manufacturer or seller.

For example, if a warning label clearly states the danger and the user still uses the product in a way disallowed by warnings but with full knowledge, assumption of risk may apply.

2. Product Misuse

If a product is used in a way that the manufacturer did not intend, foresee, or design for, product misuse can be a defense. Misuse includes using the product for applications beyond its safe design or ignoring safety instructions.

This exception often depends on whether the misuse was foreseeable. If a manufacturer should have anticipated misuses, they may still be liable if they failed to warn adequately.

3. Contributory or Comparative Negligence

This defense applies when the injured party’s own actions contributed to the harm.

• Contributory negligence in some jurisdictions completely bars recovery if the plaintiff is even slightly at fault.

• Comparative negligence reduces the recovery amount by the degree of the plaintiff’s fault (for example, if someone ignores a clear warning).

4. Statute of Limitations

Every jurisdiction sets a time limit within which a product liability claim must be filed. If the injured person waits too long after discovering the injury or defect, the lawsuit can be dismissed on statute of limitations grounds.

Knowing the limits in your jurisdiction is essential since once they pass, legal recourse is typically lost.

5. Government Contractor Defense

When a manufacturer builds a product according to detailed specifications imposed by a government entity, and the product meets those specifications, they may be shielded from some liability.

This defense recognizes that the government’s design requirements might limit the manufacturer’s ability to make safety modifications beyond spec.

6. Learned Intermediary Doctrine

In the field of pharmaceuticals and medical devices, manufacturers often supply warnings and instructions to health professionals (doctors, pharmacists) rather than directly to the end user. If the health professional acts as a “learned intermediary,” the manufacturer may fulfill its duty to warn through that professional.

This doctrine shifts certain responsibilities and can reduce liability when direct warnings to the consumer are limited.

7. State of the Art Defense

This exception holds that at the time of manufacture, certain safety measures were not technologically feasible or widely known. If the manufacturer can prove that, given knowledge and technology available at the time, no safer alternative existed, they might avoid liability.

This defense depends heavily on historical industry practices, scientific knowledge, and regulatory standards at the time of production.

8. Bulk Supplier or Component Supplier Doctrine

Suppliers of raw materials or component parts may not be liable if they did not participate in the design, assembly, marketing, or final packaging of the finished product.

If the defect arises downstream or due to how the parts were used in final assembly, the component supplier may invoke this defense.

How These Exceptions Work in Practice

Businesses must understand how courts assess these defenses. Often the outcome depends on:

• The clarity of warnings and instructions provided.

• Documentation of testing, design decisions, and quality control.

• How foreseeable misuses are and whether they were addressed.

• Jurisdictional rules—some places are more lenient with defenses like misuse; others apply stricter limitations.

Companies often prepare by including disclaimers, designing safer products, adopting robust warning labels, and ensuring good legal and risk management policies.

Frequently Asked Questions

What is the difference between assumption of risk and product misuse?
Assumption of risk requires that the user knew about the risk and still undertook it knowingly. Product misuse involves an unintended or incorrect use of the product, which may or may not involve user knowledge.

Can a manufacturer rely on multiple defenses at once?
Yes. Defendants often raise several defenses (misuse, comparative negligence, statute of limitations) in the same case to reduce or dismiss liability.

Does the learned intermediary doctrine apply to all medical products?
It typically applies to prescription medicines and medical devices where a medical professional is the intermediary between manufacturer and patient. Over-the-counter items often do not qualify.

If a product is obsolete, can state of the art defense apply?
Yes — if at the time the product was made, certain safety features were not technically or economically feasible, the manufacturer may use that defense.

Knowing these exceptions helps businesses design safer products, issue better instructions and warnings, choose insurance that addresses gaps, and manage risk proactively.

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