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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Consumer Protection

A cement company sells a chemical additive to a construction firm and gives the firm full safety instructions. The additive is later used in the firm's building mix, and a worker is harmed by the finished product, alleging inadequate warnings. Under the Act, what is the position of the additive's manufacturer in a product liability action based on failure to warn?

The manufacturer is not liable. Where a product is sold as a component or material for another product and the manufacturer gave necessary warnings or instructions to its purchaser, it escapes failure-to-warn liability even if harm comes from the end product.

  1. ALiable, because the worker never received the warnings personally
  2. BLiable, because manufacturers are strictly liable in all failure-to-warn cases
  3. CNot liable, because the additive was sold as a component and necessary warnings were given to its purchaserCorrect
  4. DNot liable only if the worker was intoxicated at the time of harm

Explanation

For warning-based actions, the manufacturer is not liable where the product was sold as a component or material for use in another product and necessary warnings were given to the purchaser of the component, even if harm arose from the end product. Intoxication is a separate exception.

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