What is a “dealer’s knowledge” defense to a product liability claim?

A “dealer’s knowledge” defense to a product liability claim is a defense in North Carolina that is used when a product is alleged to have been sold in an “unreasonably dangerous” condition. This defense relieves the seller of liability from a product liability claim if the seller was unaware of any defect in the product that made it dangerous. In order to invoke this defense, it must be established that the seller was not aware of the defect in the product before or at the time of the sale and that the seller was not expected to have known of the defect. It is important to note that a “dealer’s knowledge” defense does not always apply. Depending on the state, there may be certain conditions under which the defense will not be available. In North Carolina, the defense is only available when the seller is not a “manufacturer” of the product or its parts, and when the seller did not modify the product or its parts in any way that would make it dangerous. Additionally, a seller in North Carolina can also use the “seller’s negligence” defense, under which they may be held liable for any damages caused by a product defect if it was reasonably foreseeable that the defect could cause injury or damage. This defense is separate from the “dealer’s knowledge” defense and should be considered when analyzing a product liability claim in North Carolina.

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What is a “dealer’s knowledge” defense to a product liability claim?

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