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 Delaware, strict products liability is a legal doctrine that holds manufacturers, wholesalers, retailers, and lessors accountable for damages caused by defective products, regardless of negligence. This liability applies if the product was defective at the time it left the hands of the party in the supply chain. Delaware's approach to strict products liability is influenced by the Restatement (Second) of Torts, which is a legal guideline that many states reference for tort law, including products liability. While specific statutes may modify the common law, Delaware courts have generally upheld the principle that entities in the commercial supply chain can be held strictly liable for defective products. This means that if a product causes injury or property damage due to a defect, the injured party can seek compensation from any party in the supply chain without having to prove negligence. However, Delaware law may also include provisions for indemnification, where manufacturers are required to protect wholesalers and retailers, or conditions under which wholesalers and retailers can be held strictly liable, such as when a manufacturer is insolvent, unlocatable, or outside the court's jurisdiction.