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In this audio lecture, we delve into the realm of Business Torts and Product Liability, crucial areas in the business legal framework. We begin by defining business torts, discussing their significance, and how they often resolve through out-of-court settlements. We explore various categories such as Intentional Torts, Negligence, and Strict Liability, and the evolving role of statutes alongside traditional common law. Key torts specific to businesses like Fraud or Intentional Misrepresentation are examined, with elements including misstatement of material fact, scienter, reliance, privity, proximate cause, and damages highlighted through the case study of Yazdianpour v. Safeblood Technologies, Inc. This case emphasizes the appellate court’s decision to reverse a fraud claim dismissal, underscoring that plaintiffs are not required to investigate misrepresentations unless evident issues are present.
We also discuss Interference with Contracts and Business Relations, outlining the necessary conditions for claims and analyzing the Hamby v. Health Management Associates case, where the appeals court reversed a dismissal of a tortious interference claim. Transitioning to Product Liability, we trace its historical development from the privity of contract requirements to the establishment of strict liability, highlighted by the landmark MacPherson v. Buick Motor Co. case. The lecture further covers the types of product liabilities including negligence and strict liability, with a focus on the Greenman v. Yuba Power Products case that set a precedent for strict liability in tort for defective products.
Real-world applications are discussed through various case studies like Parish v. ICON, which deals with manufacturing defects and the adequacy of warnings, and Kim v. Toyota Motor Corporation, which explores design defects and consumer expectations. The complex issue of unknown hazards and latent defects is also covered, noting the significant impact of class action suits in scenarios like asbestos-related claims. Lastly, we review defenses in product liability cases such as product misuse or abuse, assumption of risk, sophisticated user defense, and bulk supplier doctrine, discussing their limits and applicability.
This lecture aims to provide a comprehensive overview of business torts and product liability, emphasizing the importance of these concepts for legal professionals and businesses, and encouraging further exploration of specific cases and legal principles to deepen understanding.
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