Contract Law Basics and Liability Concepts

Basic Contract Elements

• Agreement, consideration, purpose, and competent parties are essential elements of a contract.

Entity Responsible for Defects

• The entire production chain (from raw material to finished product) is liable for a defective product.
• Manufacturers have a duty to ensure that products are safe.

Privity

• Privity is a direct relationship between the injured party and the party whose negligence caused the accident.
• Manufacturers aren't always liable if there isn't a direct contract with the injured party.
• This rule regarding liability has been modified due to negligence issues.

Plaintiff

• A plaintiff is a person who brings a lawsuit against another in court.

Foreseeability

• Foreseeability excludes liablility for harms that are sufficiently unforeseeable at the time.

Strict Liability

• A manufacturer of a product is liable for any injury due to defects, irrespective of fault or negligence.
• Manufacturers are liable for any damages resulting from a defect in the product, regardless of if they were negligent or at fault.

Tort

• Tort is a wrongful act or failure to exercise due care that results in damage or injury.
• It encompasses a wide range of harm and responsibility

Express Warranty

• A written or oral statement by a manufacturer or dealer stating how a product will perform.

OSHA Violations

• Specific categories of OSHA violations exist. (Details not listed.)

De Minimis

• Refers to insignificant or frivolous matters.

Hold-Harmless Agreement

• A contractual provision where one party agrees to assume the legal liability of another party.
• This is a common provision used in contracts to protect one party from liability.

Negligence

• Not exercising reasonable care, leading to harm to another or property.
• Failure to exercise appropriate care resulting in injury or property damage to others.

Exclusive Remedy

• The only solution available to a plaintiff in a particular legal situation

Attractive Nuisance

• A landowner may be held liable for injuries to children if an object on their land attracts children.

Obvious Peril

• A manufacturer doesn't have to warn consumers about a hazard that's obvious.
• Manufacturers do not need to warn of risks if the danger is obvious, well-known hazards don’t require warnings

Contract Components

• A contract must have agreement, consideration, purpose and competent parties

Special Damages

• Damages directly resulting from negligence, breach of contract, or other misconduct.
• These are out-of-pocket costs, as opposed to subjective or speculative damages.

Res Ipsa Loquitar

• "The thing speaks for itself".
• Used in accidents where the defendant was solely in control of the damage-causing agent.

Insurance Contract Parts

• Declarations, definitions, insuring agreements are parts of a standard insurance policy.
• Exclusions, conditions, and endorsements of policies further specify various aspects of contracts

Implied Warranty

• An unwritten guarantee that a product will serve its intended purpose

Product Liability Principles

• Negligence, Strict Liability, and Implied/Express Warranty are key principles

Product Recall Characteristics

• A detailed plan outlining individual and company responsibilities during a product recall is essential
• A written plan that addresses all aspects of the recall is necessary including warnings, instructions, returns of product etc.

Hold-Harmless Agreement (Indemnity)

• A contractual provision obligating one party to assume another party’s legal liability.

Employee Unions' Impact on Safety

• Employee unions actively enhance workplace safety policies.
• They aim to eliminate harms to members via changes to safety processes and procedures.

Temporary Total Disability

• A work-related injury or disease temporarily preventing an employee from performing job duties.

Temporary Partial Disability

• A temporary work-related injury or disease limiting the worker's ability to perform job duties.

Permanent Total Disability

• A work-related injury or disease permanently preventing an individual from gainful employment.

Basic Legal Elements

• Agreement, consideration, purpose, and competent parties are essential for a valid legal contract

Summary for a Valid Contract

• All elements of a valid offer must be fulfilled to make a binding agreement

Res Ipsa Loquitor

• A legal principle where the thing speaks for itself. In case of an accident where the responsible party is clearly obvious.

Elements of Product Recall

• Clearly defined individual and company responsibilities
• Well-defined plan for the handling of the entire recall
• Actions taken to address warnings, instructions, returns etc of the product.

Legal Doctrine for Plaintiff in Pond Drowning

• Attractive Nuisance (details not listed) is the relevant legal principle

Attractive Nuisance

• Describes a potentially dangerous place, condition, or object that specifically attracts or is dangerous to children.

BCSP Code of Ethics

• Contains various principles, guidelines, and standards for ethical conduct in the profession (specific sections not outlined in the provided text)

Contract Components

• Agreement, Consideration, Purpose, Competent Parties are the key components for a valid contract.

Contractual Provisions

• A contract may include obligations, duties, provisions and rules of conduct related to the contract itself.

Implied Warranty

• An unwritten guarantee that a product is suitable for its intended purpose

Legal Principles

• Key legal principles for product liability cases include negligence, strict liability, and implied warranty.

Important characteristics of a product recall

• Detailed written plan that outlines individual and company responsibilities.