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Legal Definitions - horizontal nonprivity

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Definition of horizontal nonprivity

The legal concept of horizontal nonprivity refers to a situation where an injured party lacks a direct contractual relationship with the manufacturer or seller of a product, but is considered to be on the "same level" as the original purchaser. This typically involves individuals who are not the direct buyers of a product but are foreseeable users, such as family members, guests, or employees of the original buyer.

Historically, a legal principle called "privity of contract" often required a direct contractual relationship between parties for one to sue the other. However, in modern product liability law, this requirement has largely been relaxed, especially for defective products that cause injury. Horizontal nonprivity addresses claims made by these indirect users, allowing them to seek compensation even without having personally purchased the item.

Here are some examples illustrating horizontal nonprivity:

  • Defective Lawn Mower: Imagine that Mark purchases a new lawn mower from a hardware store. A few weeks later, his neighbor, Lisa, borrows the mower to cut her grass. Due to a manufacturing defect, the blade detaches unexpectedly, causing injury to Lisa.

    This is an example of horizontal nonprivity because Lisa did not purchase the lawn mower herself and therefore has no direct contractual relationship (privity) with the manufacturer or the hardware store. However, as a foreseeable user who borrowed the product from the original buyer, she might still be able to sue the manufacturer or seller for her injuries, despite the lack of direct contract.

  • Faulty Office Chair: A small business buys several new office chairs for its employees. One of the chairs has a hidden defect in its base. An employee, Sarah, is using the chair during her workday when the base unexpectedly collapses, causing her to fall and sustain an injury.

    In this scenario, Sarah did not purchase the office chair; her employer did. She is not in a direct contractual relationship with the chair manufacturer or the furniture supplier. However, as an employee and an intended user of the product, she is considered to be in horizontal nonprivity. Modern product liability law would likely allow Sarah to pursue a claim against the manufacturer or seller for the defective chair, even without a direct contract of sale.

  • Unsafe Children's Bicycle: A grandmother buys a bicycle as a birthday gift for her grandchild, Alex. While Alex is riding the bicycle, a critical component in the braking system fails due to a manufacturing flaw, leading to an accident and injuries.

    Alex did not purchase the bicycle directly from the store or the manufacturer; his grandmother did. Therefore, Alex lacks direct contractual privity with the sellers. Nevertheless, as the intended recipient and user of the gift, Alex is considered to be in horizontal nonprivity. This allows him to potentially bring a product liability claim against the manufacturer or seller for the injuries caused by the defective bicycle, despite not being the original purchaser.

Simple Definition

Horizontal nonprivity describes a legal situation where parties involved in a dispute, often concerning a product, do not have a direct contractual relationship with each other. This typically applies to those at the same level in the chain of distribution, such as a buyer and another user or bystander, neither of whom contracted directly with the manufacturer or seller.

The difference between ordinary and extraordinary is practice.

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