What is the “economic loss” rule in defective products law?

The “economic loss” rule in defective products law in Washington states that a consumer cannot sue a manufacturer or seller for negligence when the only damages suffered are economic. This means that if a product is defective and results in some loss of money or property, the consumer cannot sue the manufacturer or seller for negligence. To put it another way, if a product is defective and only causes economic damages, such as having to pay to repair or replace the product, then the consumer cannot sue the manufacturer or seller for damages, such as medical bills. The economic loss rule works to protect companies that make and/or sell products in Washington. Without the rule, companies could be held liable for any financial losses that occur, even when there was no negligence on their part. Additionally, the rule helps to limit costs that could be associated with a product, such as warranties and other extra features designed to protect the consumer from financial losses due to a product’s defects. In Washington, the economic loss rule applies to all product liability lawsuit cases. This means that if a consumer has been harmed due to a product’s defect, he or she can sue for negligence but cannot sue for economic damages. There are exceptions to this rule, such as if the product was used for a particular purpose and not used as intended, or if the product has been altered after sale, making it defective. In any case, the economic loss rule prohibits consumers from suing manufacturers and sellers for economic losses caused by defective products in Washington.

Related FAQs

What is a “state of the art” defense in defective products law?
What is an express warranty in defective products law?
What is the “consumer expectation test” in a defective products case?
What is a “defective instructions” defect in a defective products case?
What is a “fraudulent misrepresentation” defect in a defective products case?
How do I calculate the damages I am entitled to in a defective products case?
What is the burden of proof for a defective products claim?
What is “strict product liability” in defective products law?
What is the “consumer’s expectations test” in defective products law?
What is a Lemon Law in defective products law?

What is the “economic loss” rule in defective products law?

Related FAQs

Related Blog Posts