Strict products liability—also known as strict liability—is a legal theory of products liability that makes any person or entity in the commercial supply chain of a product—whether a manufacturer, wholesaler, retailer, or lessor—liable or responsible for personal injuries and property damage caused by a defective product—if the product was defective when it was transferred in the supply chain by that person or entity.

Strict liability attaches to such a transferor even if the transferor was not negligent with regard to the defective product. Strict liability is a public policy determination—usually made by state legislatures—that any person or entity in the commercial supply chain of a product should bear the financial risk of a defective product before the consumer does.

Products liability laws vary from state to state and many states have altered the common law rule of strict liability (located in a state’s court opinions or case law) by enacting statutes that limit strict liability to manufacturers; that require indemnification (financial protection) of wholesalers and retailers by manufacturers; or that make wholesalers and retailers of products strictly liable for defective products when the manufacturer is insolvent, unable to be located, or is not subject to the court’s jurisdiction (authority).

In Colorado, strict products liability is a legal doctrine that holds any party in the commercial supply chain responsible for damages caused by a defective product, regardless of negligence. This includes manufacturers, wholesalers, retailers, and lessors. The principle behind strict liability is to ensure that the financial burden of a defective product falls on the supplier rather than the consumer. Colorado's approach to strict products liability is influenced by both common law and statutory law. While the state's statutes may provide specific provisions regarding the liability of different parties in the supply chain, such as requirements for indemnification or exceptions when a manufacturer is insolvent or not within the court's jurisdiction, the general rule remains that entities involved in the distribution of a defective product can be held liable for resulting injuries or property damage. It is important for businesses and consumers in Colorado to understand how these laws may affect their rights and responsibilities in the event of a product defect.