PRODUCT LIABILITY: AGAINST POSSIBLE DISINCENTIVES TO INNOVATION GENERALLY AND SAFETY IMPROVEMENT SPECIFICALLY
The development of product liability law in the U.S. is outlined. It is advanced that the philosophical foundation for strict liability is less convincing if carried beyond the concept of manufacturing defects to the legal and economic consequences of product design. The definition of design defect is discussed as a major problem confronting the U.S. judiciary, and absolute liability is seen as a strong disincentive to innovation. The Swine Flu program is cited as an example, in which the pharmaceutical companies were unwilling to assume the liability risk of producing a new vaccine. Overextended product liability causes severe problems in cases of directed design (e.g. air bags and antiskid braking systems), as well as in development of possible beneficial design ideas, such as a design for a seat belt buckle which releases eight seconds after an automobile accident occurs. The Interagency Task Force on Product Liability has pointed out the need for spelling out in understandable rules the duty of manufacturers with respect to product design. The cooperation of the government and its agencies, the academic world, and practicing economists, technicians and lawyers is urged to clarify the problem.
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Supplemental Notes:
- Also published in HS-028 918, "Government, Technology, and the Future of the Automobile," New York, 1980 p 90-5. Presented at Harvard Business School Symposium on Government, Technology, and the Automotive Future, Boston, 19-20 October 1978.
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Corporate Authors:
McGraw-Hill, Incorporated
330 West 42nd Street
New York, NY United States 10036 -
Authors:
- Hulsen, H V
- Publication Date: 1980
Media Info
- Features: References;
- Pagination: 6 p.
Subject/Index Terms
- TRT Terms: Automobile industry; Disincentives; Liability; Technological innovations
- Subject Areas: Law; Safety and Human Factors; Vehicles and Equipment;
Filing Info
- Accession Number: 00392308
- Record Type: Publication
- Source Agency: National Highway Traffic Safety Administration
- Report/Paper Numbers: HS-028 924
- Files: HSL, USDOT
- Created Date: Feb 28 1985 12:00AM