The responsibility of a manufacturer or vendor of goods to compensate for injury caused by a defective good that he or she has provided for sale. When a person is harmed by an unsafe product, she or he may have a cause of action against the persons who designed, manufactured, sold, or furnished that product. In the United States, some consumers have hailed the rapid growth of product liability litigation as an effective tool for consumer protection. Manufacturers and others who distribute and sell goods argue that product liability verdicts have enriched plaintiffs' attorneys and added to the cost of goods sold. Businesses have sought tort reform from state legislatures and Congress in hopes of reducing damage awards that sometimes number in the millions of dollars.
Negligence refers to the absence of, or failure to exercise, proper or ordinary care.
It means that an individual who had a legal obligation either omitted to do what should have been done or did something that should not have been done. A manufacturer can be held liable for negligence if lack of reasonable care in the production, design, or assembly of the manufacturer's product caused harm. For example, a manufacturing company might be found negligent if its employees did not perform their work properly or if management sanctioned improper procedures and an unsafe product was made. Breach of warranty refers to the failure of a seller to fulfill the terms of a promise, claim, or representation made concerning the quality or type of the product. The law assumes that a seller gives certain warranties concerning goods that are sold and that he or she must stand behind such direct assertions.