Legal Definitions - presumed-seller test

The presumed-seller test is a legal standard used to determine if a manufacturer should be held responsible for harm caused by their product. This test asks whether a manufacturer, having full knowledge of a product's inherent dangers or defects, would be considered careless or irresponsible for releasing that product to the public. If a manufacturer proceeds to sell a product despite knowing it poses an unreasonable risk, they can be held liable for injuries or damages that result from its use.

• Example 1: Automotive Safety

  Imagine a car manufacturer discovers during pre-production crash testing that a specific model's fuel tank is highly susceptible to rupture and explosion in rear-end collisions, even at moderate speeds. Despite this clear evidence of a life-threatening design flaw, the manufacturer decides to proceed with mass production and sale of the vehicle to avoid costly redesigns and delays.

  How it illustrates the term: If the "presumed-seller test" were applied, the manufacturer would likely be found negligent. They had full knowledge of a severe dangerous propensity (exploding fuel tank) but still chose to place the product on the market. This would make them liable for any injuries or deaths resulting from such collisions.

• Example 2: Pharmaceutical Products

  Consider a pharmaceutical company developing a new pain medication. During advanced clinical trials, internal data reveals that a significant percentage of patients experience severe liver damage as a side effect, a risk not adequately mitigated by the drug's benefits. The company, however, decides to downplay these findings in their regulatory submissions and aggressively market the drug to maximize profits.

  How it illustrates the term: Under the "presumed-seller test," the pharmaceutical company would be deemed negligent. They possessed clear, documented evidence of a dangerous propensity (severe liver damage) but still chose to place the product on the market without sufficient warnings or a re-evaluation of its safety profile, making them liable for harm to patients.

• Example 3: Children's Toys

  A toy company designs a new line of building blocks for toddlers. Before launch, internal safety tests reveal that certain small, decorative pieces on the blocks can easily detach, posing a significant choking hazard for young children. Instead of redesigning the blocks or recalling the defective batch, the company decides to proceed with sales, perhaps hoping that parents will supervise closely or that the risk is minimal.

  How it illustrates the term: Applying the "presumed-seller test," the manufacturer would be found negligent. They had direct knowledge of a dangerous defect (choking hazard) in their product but still allowed those products to be sold to the public, thereby incurring liability for any harm caused to children.