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

The “risk-utility test” in defective products law is applied in cases involving product liability in New York. This test is used to determine if a product was defectively designed such that it posed an unreasonable danger to the consumer. The risk-utility test balances the benefits of the product’s design against any risks presented by the design. Benefits are judged based on the product’s utility, meaning how much the product is able to accomplish and how useful it is. Risks are judged based on the likelihood and severity of the harm that could result from the product’s design. The court will then compare the utility and risk of the product in its actual use by the consumer, rather than in how it was designed in a laboratory setting. This means that the court will look at how the product is likely to be used, which might be different than how the manufacturer designed it. If the court finds that the balance of risks outweighs the utility of the product, then the product can be deemed defectively designed. In this case, the manufacturer might be held liable for any injuries caused by the product. If the utility of the product outweighs the risk, then the product can be deemed not defectively designed, and the manufacturer will not be held liable.

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

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