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 Tennessee, strict products liability is governed by both common law and statutory law. Under this legal theory, any party in the commercial supply chain, including manufacturers, wholesalers, retailers, or lessors, can be held liable for damages caused by a defective product, regardless of whether they were negligent. Tennessee law aligns with the public policy that places the financial burden of defective products on the parties in the supply chain rather than on the consumer. While the specifics can vary, Tennessee may have provisions that limit strict liability to manufacturers or require manufacturers to indemnify wholesalers and retailers. Additionally, there may be circumstances under which wholesalers and retailers can be held strictly liable, such as when the manufacturer is insolvent, cannot be located, or is outside the jurisdiction of the courts. It is important for entities involved in the commercial supply chain to understand their potential liabilities under Tennessee's strict products liability laws and to consult with an attorney for guidance specific to their situation.