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 Ohio, strict products liability is governed by both common law and statutory law. Under Ohio law, any party in the commercial supply chain, including manufacturers, wholesalers, retailers, or lessors, can be held strictly liable for harm caused by a defective product, regardless of fault or negligence. This means that if a product is found to be defective and causes injury or property damage, the injured party can seek compensation from any entity involved in the distribution of the product. Ohio's strict liability laws are designed to protect consumers by ensuring that the costs associated with defective products are borne by the businesses involved in their production and distribution rather than by the consumer. While Ohio law generally follows the principle of strict liability for parties in the supply chain, there may be specific statutes that provide certain limitations or requirements for indemnification, particularly in cases where a manufacturer is insolvent, cannot be located, or is outside the court's jurisdiction.