What is the “risk-utility test” in defective products law?

The “risk-utility test” is a legal concept used in defective product law in Indiana and other places. It is used to determine whether a product is considered “unreasonably dangerous” or “defective” and therefore in breach of a product liability law. The test looks at two factors: the risks associated with a product and the utility of the product. Risk is determined by looking at the overall probability of an injury occurring while using the product, as well as the severity of that injury. Utility looks at the overall usefulness or advantage the product provides. If the risk outweighs the usefulness of a product, then it is deemed “unreasonably dangerous.” If that is the case, the maker, seller, or distributor of the product can be held liable for the user’s injuries. The “risk-utility test” is important in determining whether a product is defective. It is a balancing act between ensuring that products are safe for use, while also encouraging innovation and product development from commercial entities. It allows courts to analyze the risks and benefits of a product and make a decision accordingly.

Related FAQs

What is the “risk-utility test” in defective products law?

Related FAQs

Related Blog Posts