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A closely related test is risk-utility test. Traditionally, the risk-utility test was used for design defects, while the consumer expectation test was applied to manufacturing defects. However, some jurisdictions apply the consumer expectation test to design defects as well. See Calles v. Scripto-Tokai Corp., 2007 WL 495315 (Ill. Feb. 16, 2007).
In California, one such statute is the Unfair Competition Law ("UCL"), Business and Professions Code §§ 17200 et seq. The UCL "borrows heavily from section 5 of the Federal Trade Commission Act " but has developed its own body of case law.
Yuba Power Products, Inc, was a California torts case in which the Supreme Court of California dealt with the torts regarding product liability and warranty breaches. The primary legal issue of the case was to determine whether a manufacturer is strictly liable in tort when an article he places on the market proves to have a defect that causes ...
In reviewing Yahoo's claim for declaratory relief, the Court applied a three-part version of the Calder test to determine if the effects of LICRA's action were sufficiently directed at California to establish personal jurisdiction, including whether the defendant: 1. committed an intentional act; 2. expressly aimed at the forum state, and 3 ...
Generally, the simplest way to think of the risk-utility test is the Hand Formula applied to products. The Third Restatement of the Law, Torts: Products Liability §2(b) [ 1 ] favors the risk-utility test over the Second Restatement of the Law, Torts §402(a), which favored the consumer expectations test . §2(b) states, in part, "A product is ...
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