South Carolina Personal Lines Practice Exam

If a manufactured product is found to be unsafe, what type of liability applies to the manufacturer?

1. Negligent liability

2. Strict liability

3. Vicarious liability

4. General liability

The correct answer is: Strict liability

When a manufactured product is found to be unsafe, the type of liability that applies to the manufacturer is strict liability. This legal principle holds manufacturers and sellers liable for defects in their products, irrespective of their intentions or the care they took in producing or selling the product. Under strict liability, the focus is on the product itself rather than on the conduct of the manufacturer. This means that if a product is deemed hazardous or defective, the injured party does not have to prove that the manufacturer was negligent or failed to meet a standard of care. Instead, the mere fact that the product caused harm is often sufficient to establish liability. This approach encourages manufacturers to maintain high safety standards since they cannot escape responsibility for defective products just by demonstrating that they acted carefully. In contrast, negligent liability would require proof of a breach of duty or lack of reasonable care, which is not necessary under strict liability. Vicarious liability involves holding one party liable for the actions of another, typically in employment contexts, and does not apply here. General liability covers a broad range of liabilities that do not specifically relate to product defects. Therefore, when contemplating liability for an unsafe manufactured product, strict liability is the applicable legal framework.