A more thorough explanation:

Manufacturer's liability, also known as products liability, refers to the legal responsibility of a manufacturer or seller for any damages or injuries caused by a defective product. This can include injuries suffered by the buyer, user, or bystander.

Products liability can be based on a theory of negligence, strict liability, or breach of warranty. Strict products liability arises when the buyer proves that the goods were unreasonably dangerous and that the seller was in the business of selling goods, the goods were defective when they were in the seller's hands, the defect caused the plaintiff's injury, and the product was expected to and did reach the consumer without substantial change in condition.

For example, if a person buys a car and the brakes fail, causing an accident and injury, the manufacturer may be held liable for the damages. Similarly, if a person uses a defective power tool and is injured, the manufacturer may be held liable for the injuries.