Strict products liability—also known as strict liability—is a legal theory of products liability that makes any person or entity in the commercial supply chain of a product—whether a manufacturer, wholesaler, retailer, or lessor—liable or responsible for personal injuries and property damage caused by a defective product—if the product was defective when it was transferred in the supply chain by that person or entity.
Strict liability attaches to such a transferor even if the transferor was not negligent with regard to the defective product. Strict liability is a public policy determination—usually made by state legislatures—that any person or entity in the commercial supply chain of a product should bear the financial risk of a defective product before the consumer does.
Products liability laws vary from state to state and many states have altered the common law rule of strict liability (located in a state’s court opinions or case law) by enacting statutes that limit strict liability to manufacturers; that require indemnification (financial protection) of wholesalers and retailers by manufacturers; or that make wholesalers and retailers of products strictly liable for defective products when the manufacturer is insolvent, unable to be located, or is not subject to the court’s jurisdiction (authority).
In Texas, strict products liability is a legal doctrine that holds manufacturers, wholesalers, retailers, and lessors responsible for damages caused by defective products, regardless of fault or negligence. This liability applies if the product was defective at the time it left the hands of the party in the supply chain. Texas law aligns with the public policy that places the financial burden of defective products on entities within the commercial supply chain rather than on consumers. While the specifics can vary, Texas generally follows the principles of strict liability for parties in the distribution chain of a product. However, there may be statutory provisions that limit the liability of certain parties or require manufacturers to indemnify downstream sellers. It is important for entities involved in the commercial supply chain to understand their potential liability under Texas law and for consumers to be aware of their rights when harmed by a defective product. An attorney can provide detailed guidance on how these principles apply to specific circumstances.
