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.

This quiz covers fundamental concepts of contract law, including essential elements such as agreement and consideration. It also explores liability issues related to product defects, privity, and strict liability. Test your understanding of these legal principles and how they apply in practice.