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Abstract

Product liability developments have been widely discussed but often with differing views regarding their impact on companies. This article reviews this debate from a marketing perspective by analyzing relevant insurance industry data and case law decisions. Conclusions drawn from the analysis as well as their implications for marketing managers are presented.

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References

A. L. Bell v. Harrington Manufacturing Company (1975), 219 S.E.2d 906 (S.Ct. S.C.)

Alliance of American Insurers (1980), A Survey of Large-Loss Product Liability Claims, Chicago: Alliance of American Insurers.

American Jurisprudence 2d, Negligence (1971), 57.

American Jurisprudence 2d, Sales (1973), 67.

American Optical Company v. Weidenhamer (1980), CCH Prod.Liab.Rep. para. 8670 (C.A.4 Ind.).

Baker v. St. Agnes Hospital (1979), CCH Prod.Liab.Rep. para. 8563 (N.Y. Sup.Ct. App.Div.).

Bichler v. Willing (1977), 58 App.Div.2d 331, 397 N.Y.2d 57.

Bigham v. J. C. Penney Co. (1978), 268 N.W.2d 892, CCH Prod.Liab.Rep. para. 8196 (Minn.).

Bituminous Casualty Corp. v. Black and Decker Manufacturing Co. (1974), CCH Prod.Liab.Rep. para. 7445, 518 S.W.2d 868 (Tex.Cir.App.).

10.

Blasing v. P. R. L. Hardenburgh Co. (1975), 226 N.W.2d 110, CCH Prod.Liab.Rep. para. 7394 (S.Ct. Minn.).

11.

Boehm v. Fox (1973), CCH Prod.Liab.Rep. para. 6894 (C.A. 10 Kan.).

12.

Bryer v. Rath Packing Co. (1957), 221 Md. 105, 156 A.2d 442, 77 A.L.R.2d 1.

13.

Business Week (1979), “The Devils in the Product Liability Laws,” (February 12), 72–78.

14.

Business Week (1980), “A Product Liability Bill Has Insurers Uptight,” (March 31), 43.

15.

Business Week (1981), “More Punitive Damage Awards,” (January 12), 86.

16.

“Can Monstrous Product Liability Claims Be Contained?” (1980), Journal of American Insurance, 56 (Fall), 20–22.

17.

Carpenter v. Alberto Culver Co., 28 Mich.App. 399, 184 N.W.2d 547 (1971).

18.

Chandran

Rajan

, and Linneman

Robert

(1978), “Planning to Minimize Product Liability,” Sloan Management Review, 30 (Fall), 33–45.

19.

Chappius v. Sears, Roebuck & Co. (1977), 349 So.2d 963 (La.App. 1st Cir.).

20.

Chemco Industrial Applicators Co. v. E. I. DuPont de Nemours & Co. (1973), 366 F.Supp. 278, CCH Prod.Liab.Rep. para. 7122 (U.S.D.C. E.D.Mo.).

21.

Community Television Services, Inc. v. Dresser Industries, Inc. (1977), 435 F.Supp. 214 (D.C. S.D.), aff'd 586 F.2d 637 (C.A.8 1978).

22.

Cooley v. Quick Supply Company (1974), 221 N.W.2d 763 (S.Ct. Ia.).

23.

Corpus Juris Secondum, Supplement, Products Liability (1975), 72.

24.

Crocker v. Winthrop Laboratories, Division of Sterling Drug, Inc. (1974), 514 S.W.2d 429 (Tex.).

25.

D. L. Heil v. Standard Chemical Manufacturing Company (1974), 223 N.W.2d 37 (S.Ct. Minn.).

26.

Demars v. Natchitoches Coca-Cola Bottling Co. (1977), 353 So.2d 433, cert. den. 354 So.2d 1384 (La. 1977).

27.

Dougherty v. Hooker Chemical Corp. (1976), 540 F.2d 174 (3rd Cir.).

28.

Final Report (1978), Interagency Task Force on Product Liability, U.S. Department of Commerce, Washington, DC: U.S. Government Printing Office.

29.

Finger v. Dobbs (1978), CCH Prod. Liab. Rep. para. 8138 (C.A. Tenn.).

30.

Frumer

Louis R.

, and Friedman

Melvin I.

(1980), Products Liability, New York: Mathew Bender.

31.

Gobin v. Avenue Food Mart (1960), 178 Cal.App.2d 345, 2 Cal. Rptr. 822.

32.

Gordon Associates, Inc. (1977), Interagency Task Force on Product Liability; Final Report of the Industry Study, Springfield, VA: National Technical Information Service.

33.

Gray

Irwin

, Bases

Albert L.

, Martin

Charles H.

, and Sternberg

Alexander

(1975), Product Liability: A Management Response, New York: AMACOM.

34.

Griffin v. Wheeler-Leonard Co., Inc. (1976), 290 N.C. 185, 225 S.E.2d 557.

35.

Harrison v. Flota Mercante Grancolombi, ANA, S.A. (1978), CCH Prod. Liab. Rep. para. 8350 (C.A.5).

36.

Hasson v. Ford Motor Company (1977), 564 P.2d 857, 138 Cal. Rptr. 705.

37.

Hauter v. Zogarts (1975), 14 Cal.3d 104, 120 Cal. Rptr. 681, 534 P.2d 377.

38.

Henry v. Don Wood Volkswagen, Inc. (1974), 562 S.W.2d 483, CCH Prod. Liab. Rep. para. 7364 (C.A. Tenn.).

39.

Hoffman v. A. B. Chance Co. (1972), 339 F.Supp. 1385 (D.C. Pa.).

40.

Huebner v. Hunter Packing Co. (1978), 59 Ill.App.3rd 563, 16 Ill.Dec. 766, 375 N.E.2d 873.

41.

Hunt v. Ford Motor. Co. (1977), CCH Prod. Liab. Rep. para. 7929 (C.A. La.).

42.

Hursh

Robert D.

, and Bailey

Henry J.

(1974), American Law of Product Liability, 2nd edition, Rochester NY: The Lawyers Co-operative Publishing Co.

43.

Incollingo v. Ewing (1971), 444 Pa. 263, 282 A.2d 206.

44.

Insurance Services Office (1977), Product Liability Closed Claim Survey: A Technical Analysis of Survey Results, New York: Insurance Services Office.

45.

Johnson

Anita

(1978), “Behind the Hype on Product Liability,” The Forum, 14 (Fall), 317–326.

46.

Jonescue v. Jewel Home Shopping Service (1974), 306 N.E.2d 312.

47.

Keeton

W. Page

, Owen

David G.

, and Montgomery

John E.

(1980), Products Liability and Safety: Cases and Materials, Mineola, NY: Foundation Press.

48.

Kimble

William

, and Lesher

Robert O.

(1979), Products Liability, St. Paul, MN: West Publishing Company.

49.

Klages v. General Ordnance Equipment Corp. (1976), 367 A.2d 304 (Pa.Sup.Ct.).

50.

L. A. Green Seed Co. v. Williams (1969), 246 Ark. 463, 438 S.W.2d 717.

51.

Love v. Wolf (1967), 249 Cal.App.2d 822, 58 Cal.Rptr. 42.

52.

Lyons v. Premo Pharmaceutical Labs, Inc. (1979), CCH Prod.Liab.Rep. para. 8547 (Super.Ct. N.J.).

53.

McCann v. Atlas Supply Company (1971), 325 F.Supp. 701 (D.C. Pa.).

54.

McKinsey & Company, Inc. (1977), Interagency Task Force on Product Liability; Final Report of the Insurance Study, Springfield, VA: National Technical Information Service.

55.

Mehochko v. Gold Seal Company (1966), 213 N.E.2d 581 (C.A.5 Ill.).

56.

Moody v. Sears, Roebuck & Co. (1971), 324 F.Supp. 844 (D.C. Ga.).

57.

Morgan

Fred W.

(1979), “The Products Liability Consequences of Advertising,” Journal of Advertising, 8 (Fall), 30–37.

58.

Morgan

Fred W.

, and Boedecker

Karl A.

(1980), “The Role of Personal Selling in Products Liability Litigation,” Journal of Personal Selling & Sales Management, 1 (Fall-Winter), 34–40.

59.

Nissen Trampoline Co. v. Terre Haute First National Bank (1975), CCH Prod. Liab. Rep. para. 7800, 332 N.E.2d 820 (Ind.App.), rev'd on other grounds, 358 N.E.2d 974 (1976).

60.

Ortho Pharmaceutical Corp. v. Chapman (1979), CCH Prod. Liab. Rep. para. 8450, 388 N.E.2d 541 (Ind.App.).

61.

Parisi v. Carl W. Bush Co. (1949), 67 A.2d 875, 4 N.J.Super. 472.

62.

Perham

John C.

(1977), “The Dilemma in Product Liability,” Dun's Review, 109 (January), 48–50, 76.

63.

Product Liability Reporter (1974), New York: Commerce Clearing House.

64.

Rabadi v. Price Sales & Engineering, Inc. (1980), CCH Prod.Liab.Rep. para. 8620 (D.C. N.Y.).

65.

Restatement (Second) of Torts (1965), American Law Institute.

66.

Ross

Kenneth

, and Foley

Martin J.

(1979), Product Liability of Manufacturers: Prevention and Defense, NY: Practicing Law Institute.

67.

Scheuler v. Aamco Transmissions, Inc. (1977), 1 Kan.App.2d 525, 571 P.2d 48.

68.

Selected Papers (1978), Interagency Task Force on Product Liability, U. S. Department of Commerce, Washington, DC: U.S. Government Printing Office.

69.

Shotkoski v. Standard Chemical Manufacturing Company (1975), 237 N.W.2d 92 (Neb.).

70.

Sochanski v. Sears, Roebuck & Co. (1979), 477 F.Supp. 320 (E.D. Pa.), CCH Prod. Liab. Rep. para. 8674 (C.A.3 1980).

71.

Spiller v. Montgomery Ward & Co. (1974), 294 So.2d 803 (La.).

72.

Stapinski v. Walsh Construction Co., Inc. (1978), CCH Prod. Liab. Rep. para. 8341 (C.A. Ind.).

73.

Starr v. Koppers Company (1966), 398 S.W.2d 827, CCH Prod. Liab. Rep. para. 5506 (C.A. Tex.).

74.

Stevens v. Parke, Davis & Co. (1973), 9 Cal.3d 51, 107 Cal.Rptr. 45, 507 P.2d 653, 94 A.L.R.3d 1059.

75.

Texas Bitulithic Co. v. Caterpillar Tractor Co. (1962), 357 S.W.2d 406 (Tex. Civ. App.).

76.

The Research Group, Inc. (1977), Interagency Task Force on Product Liability; Final Report of the Legal Study., Springfield, VA: National Technical Information Service.

77.

Tirino v. Kenner Products Company (1973), 72 Misc.2d 1094, 341 N.Y.S.2d 61, CCH Prod. Liab. Rep. para. 6950.

78.

Uniform Commercial Code (1972), American Law Institute. “Uniform Product Liability Law” (1979), Interagency Task Force on Product Liability Draft, Federal Register, AA (January 12), 2996–3019.

79.

W. H. Elliott & Sons, Inc. v. E. & F. King & Co., Inc. (1961), 291 F.2d 79 (C.A.1).

80.

Weinstein

Alvin S.

, Twerski

Aaron D.

, Piehler

Henry R.

, and Donaher

William A.

(1978), Products Liability and the Reasonably Safe Product: A Guide for Management, Design, and Marketing, New York: John Wiley & Sons, Inc.

81.

West v. Alberto Culver Co. (1973), 486 F.2d 459 (C.A. 10 Colo.).

82.

Westerman v. Sears, Roebuck & Co. (1978), CCH Prod. Liab.Rep. para. 8416, 577 F.2d 873 (C.A.5 Fla.).

83.

Wilson v. E-Z Flo Chem. Co. (1972a), 13 N.C.App. 610, 186 S.E.2d 679.

84.

Wilson v. E-Z Flo Chem. Co. (1972b), 281 N.C. 506, 189 S.E.2d 221.

85.

Winkler v. American Safety Equipment Corp. (1979), CCH Prod. Liab. Rep. para. 8601 (C.A. Colo.).

Marketing and Product Liability: A Review and Update

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