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 Utah, strict products liability is a legal doctrine that holds any party in the commercial supply chain responsible for damages caused by a defective product, regardless of negligence. This includes manufacturers, wholesalers, retailers, and lessors. The principle behind strict liability is to ensure that the financial burden of a defective product falls on the supplier rather than the consumer. Utah's approach to products liability is influenced by both common law and statutory law. While the state follows the general principles of strict liability, there may be specific statutes that outline the extent of liability for different parties in the supply chain, including potential limitations on liability for certain entities and indemnification requirements. For instance, Utah law may limit strict liability to manufacturers in some cases, or require manufacturers to indemnify wholesalers and retailers. Additionally, in situations where a manufacturer is insolvent, cannot be located, or is outside the court's jurisdiction, wholesalers and retailers might still be held strictly liable. It is important for entities involved in the commercial supply chain of products in Utah to understand their potential liability under the state's strict products liability laws.