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

The “risk-utility test” is an important concept in New York’s defective products law. This test deals with the responsibility of a manufacturer when a product causes injury to a customer. The test looks at whether the risks of the product outweigh the utility or benefits of the product in question. Seeley v. White Motor Co. established the risk-utility test in New York. In this case, a plaintiff suffered injury from a negligent design that was known by the manufacturer. The court held that in order to prove their case, the plaintiff would need to demonstrate that the risks of the product were greater than the utility of the product. The risk-utility test requires a complete analysis of the product’s design, including an evaluation of both the cost and the benefit of the risk that is introduced by the design. Risk elements include the likelihood that the product will cause injury, as well as the severity of any injury that could occur. Utility elements include the degree to which the product meets the demands of the market, as well as the cost of any alteration that could be made to reduce the risk of the product. The risk-utility test can be complex, as it requires an evaluation of the product’s design and a comparison of the risks and benefits of the product. In New York, the risk-utility test is used when determining liability for injury caused by a defective product. If the risks of the product outweigh the utility, then the manufacturer may be found liable for the injury caused.

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

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