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CPCU 530 - Chapter 10
Definitions
33
Other
Not Applicable
12/09/2007

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Term
Products liability
Definition
a manufacturer’s or seller’s tort liability for harm suffered by a buyer, user, or bystander and a result of a defective product
Term
Macpherson doctrine
Definition
a court ruling extending a manufacturer’s liability beyond the immediate purchase of an article to any user and to those who would likely be affected by the article’s use and who suffered harm from its use
Term
Strict liability, or absolute liability
Definition
liability that arises from inherently dangerous activities resulting in harm to another, regardless of the degree of care taken
Term
Implied warranty of merchantability
Definition
– a warranty representing to the buyer that merchandise is reasonably fit for the general purpose for which it was manufactured and sold
Term
State of the art
Definition
the highest level of pertinent product scientific knowability, development, and technical knowledge existing at the time of a product’s manufacture
Term
Scientific knowability
Definition
the technological feasibility of producing a safer product based on existing scientific knowledge
Term
Passive negligence
Definition
a plaintiff’s failure to discover a product defect or to guard against a possible defect
Term
Active negligence, or assumption of risk
Definition
a plaintiff’s voluntary use of a defective product with knowledge of the potential danger resulting from the defect
Term
Toxic tort
Definition
a civil wrong arising from exposure to a toxic substance
Term
Environmental law
Definition
the body of law that deals with the environment’s maintenance and protection
Term
Superfund
Definition
a program established by the Comprehensive Environment Response, Compensation, and Liability Act (CERCLA) to study and remediate hazardous waste sites listed on the National Priority List (NPL
Term
Potentially responsible parties (PRPs)
Definition
those parties CERCLA defines as having potential liability and the duty to clean up a Superfund site
Term
Commercial general liability (CGI) policy
Definition
insurance that covers many of the common liability loss exposures faced by an organization, including its premises, operations, and products liability loss exposures
Term
Occurrence-based policy
Definition
insurance policy that provides coverage for occurrences that happened within the policy period even thought the policy may have expired
Term
Nominal damages
Definition
a small sum awarded by a court to acknowledge that the plaintiff has suffered a legal wrong, but that the harm does not warrant substantial monetary relief
Term
Special damages
Definition
Compensatory damages for actual losses that the plaintiff claims resulted from the defendant’s wrongful act
Term
Loss of wages and earnings
Definition
the compensatory damages to compensate a plaintiff for any loss of income directly related to a tort
Term
General damages
Definition
compensatory damages that do not have an economic value and that are presumed to follow from the type of wrong claimed by the plaintiff
Term
Pain and suffering
Definition
Physical pain, including that not connected to a physical injury
Term
Emotional distress
Definition
a highly unpleasant mental reaction resulting from another person’s conduct for which a court can award damages
Term
Bad-faith damages
Definition
the damages awarded by a court when the defendant has engaged in unreasonable conduct either with knowledge that it is unreasonable or with complete disregard of the fact that it is unreasonable
Term
Survival statute
Definition
a statute that preserves the right of a person’s estate to recover damages that person sustained between the time of injury and death
Term
Joint tortfeasors
Definition
two or more parties who are jointly responsible for committing a tort
Term
Contribution
Definition
the right of a tortfeasor who has paid more than his or her proportionate share of the damages to collect from other tortfeasors responsible for the same tort
Term
Enterprise liability, or industry-wide liability
Definition
an expanded liability concept requiring each member of an industry responsible for manufacturing a harmful or defective product to share liability, when a manufacturer at fault cannot be identified
Term
Alternative liability
Definition
an expanded liability concept that shifts the burden of proof to each of several defendants in a tort case when there is uncertainty regarding which defendant’s action was the proximate cause of the harm
Term
Market-share liability
Definition
an expanded liability concept that applies when a product that has harmed a consumer cannot be traced to a single manufacturer; all manufacturers responsible for a substantial share of the market are named in the lawsuit and are liable for their proportional share of the judgment
Term
Concert of action
Definition
an expanded liability concept that apples when all defendants acted together or cooperatively
Term
Conspiracy
Definition
an expanded liability concept that applies when two or more parties worked together to commit an unlawful act
Term
Family purpose doctrine
Definition
a liability concept that holds the owner of an automobile kept for the family’s use vicariously liable for damages incurred by a family member while using the automobile
Term
Mass tort litigation
Definition
a class-action suit based on tort law rather than on contract law
Term
Statute of limitation
Definition
a statute limiting the time for filing suit, starting from the time the cause of action accrued
Term
Statute of repose
Definition
a statute that requires a plaintiff to file a lawsuit within a specific time after a specific event
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