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 California, 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 and causes injury or property damage, any entity in the product's distribution chain can be held liable. California's approach to strict products liability is based on public policy, which prioritizes consumer protection over the financial risk to businesses involved in the production and sale of goods. The state's application of strict liability is derived from case law rather than specific statutes, and it reflects the principle that consumers should not bear the burden of defective products. While laws can vary, California has not significantly limited strict liability to manufacturers alone, and other entities in the supply chain can still be held accountable under this doctrine. However, there may be provisions for indemnification by manufacturers in certain circumstances, especially when issues of insolvency or jurisdiction arise.
