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

The “economic loss” rule in defective products law in Indiana states that a consumer cannot be compensated for damages that are purely economic in nature, such as the loss of use or functionality of the product or the decrease in the product’s value. This means that the consumer cannot sue the manufacturer for such damages, and instead must rely on other remedies such as the manufacturer’s warranty or insurance coverage. In other words, the “economic loss” rule applies to claims for damages that result from a defect in a product, such as when a product is defective or fails to perform its intended function. If a consumer purchases a product and it fails to perform its intended function, the consumer may not be entitled to any damages from the manufacturer – not even the price of the product. The consumer may, however, be able to recover the cost of repair or replacement of the defective product. In addition, the “economic loss” rule does not apply to cases of personal injury or death caused by a defective product. In such cases, the consumer may be able to sue the manufacturer for medical bills, funeral expenses, and other damages. In summary, the “economic loss” rule in defective products law in Indiana states that a consumer cannot be compensated for purely economic damages that result from a product’s defect or failure to perform. However, personal injury or death caused by a defective product may be eligible for damages.

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

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