Legal Definitions - sealed-container rule

The sealed-container rule is a legal principle in products liability that protects a seller from being held responsible for a defective product under specific circumstances. This rule applies when a seller receives a product from a manufacturer in a sealed or pre-packaged condition and then sells it to a customer without opening or altering it. If the product turns out to be defective, the seller is generally not liable if they had no knowledge of the defect and no reasonable way to inspect the product for flaws before selling it. The responsibility for the defect typically remains with the manufacturer in such cases.

Here are some examples illustrating the sealed-container rule:

• Grocery Store Milk: A customer buys a sealed carton of milk from a local grocery store. After opening it at home, they discover the milk is spoiled, even though it's well within its "best by" date. The spoilage was due to a manufacturing defect in the sealing process at the dairy, allowing bacteria to enter.

  Explanation: The grocery store received the milk in its sealed carton directly from the dairy (manufacturer). The store had no way of knowing the milk was spoiled without opening the carton, which would make it unsellable. Therefore, under the sealed-container rule, the grocery store would likely not be held liable for the defect; the liability would fall on the dairy.

• Electronics Retailer Smartphone: An individual purchases a brand-new, factory-sealed smartphone from a major electronics retailer. Upon setting it up, they discover the phone's camera has a persistent software glitch that prevents it from taking clear photos, a defect present from manufacturing. The retailer sold the phone in its original, unopened packaging.

  Explanation: The electronics retailer sold the smartphone exactly as it was received from the manufacturer, in a sealed box. They had no reasonable opportunity to inspect the internal software functionality of the camera without opening and extensively testing each individual phone, which is not standard practice for new, sealed electronics. Consequently, the sealed-container rule would protect the retailer from liability, shifting the responsibility for the camera defect to the smartphone manufacturer.

• Hardware Store Paint: A customer buys a sealed can of paint from a hardware store. When they open the can at home, they find the paint is a completely different color than indicated on the label, due to an error at the paint factory. The hardware store sold the can without opening it.

  Explanation: The hardware store received the paint in a sealed can from the manufacturer. There was no practical way for the store to verify the color inside the can without opening it, which would render the product unsellable. Because the store sold the product in its original, sealed condition without knowledge of the defect and no reasonable opportunity to inspect, the sealed-container rule would likely apply, meaning the paint manufacturer, not the hardware store, would be primarily liable for the mislabeled paint.