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 Illinois, the doctrine of strict products liability holds any party in the commercial distribution chain responsible for damages caused by a defective product, regardless of fault or negligence. This includes manufacturers, wholesalers, retailers, and lessors. The liability arises when a product is defective at the time it leaves the possession of the party in the supply chain. Illinois law reflects the public policy that the cost of injuries resulting from defective products should be borne by the parties who place such products into the stream of commerce rather than by the injured consumers. While the specifics can vary, Illinois has generally followed the principles outlined in the Restatement (Second) of Torts, Section 402A, which has been influential in shaping strict liability law in the state. It is important to note that while strict liability can apply broadly, there may be statutory limitations and requirements for indemnification that can shift the financial burden, particularly in cases where manufacturers are insolvent or beyond the court's jurisdiction.