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 Oregon, 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. Oregon's approach to strict products liability is based on both common law and statutory law. The state has adopted the doctrine through court decisions, which are supplemented by statutes that may define and sometimes limit the scope of liability. For example, Oregon law may provide certain protections or requirements for indemnification that affect the liability of wholesalers and retailers. It is important for businesses in the supply chain to understand their potential liability under Oregon's strict products liability laws and to take appropriate measures to minimize their risk, such as ensuring the safety of the products they manufacture or sell.