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 New Hampshire, strict products liability is a legal doctrine that holds any party in the commercial supply chain of a product responsible for damages caused by a defective product, regardless of fault or negligence. This includes manufacturers, wholesalers, retailers, and lessors. The principle behind strict liability is to ensure that the cost of injuries or damages from defective products is borne by the suppliers rather than the consumers. New Hampshire follows the Restatement (Second) of Torts, which is a legal standard that many states use for products liability cases. Under this standard, a party can be held strictly liable if the product sold was in a defective condition unreasonably dangerous to the user or consumer. New Hampshire has not significantly deviated from the common law rule of strict liability through statutes, and thus, the common law as interpreted by New Hampshire courts largely governs strict products liability claims in the state. It is important for entities in the supply chain to be aware of these liabilities and for consumers to understand their rights under these laws. An attorney can provide specific guidance on how these principles apply to individual cases.