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 North Dakota, strict products liability is a legal doctrine that holds manufacturers, wholesalers, retailers, and lessors responsible for damages caused by defective products, regardless of negligence. This means that if a product is found to be defective at the time it was transferred in the commercial supply chain, the party responsible for the transfer can be held liable for injuries or property damage resulting from the defect. North Dakota's approach to strict products liability is influenced by both common law and state statutes. While the state may have specific statutes that address certain aspects of products liability, such as limitations on liability for certain parties in the supply chain or indemnification requirements, the general principle is that entities involved in the distribution of a product bear the financial risk associated with defects, rather than the consumer. It is important for businesses and consumers to consult with an attorney to understand the specific applications of products liability law in North Dakota, as these laws can be complex and subject to change.