What is a “market share liability” in defective products law?

Market share liability is a doctrine used in Defective Products Law in Arkansas. It holds companies liable for damages caused by a product even if the manufacturer of that product cannot be identified. Under this doctrine, all manufacturers of similar products are held accountable for any injuries or damages caused by defective products. This means that even if it is impossible to identify the specific manufacturer of a product, all producers of that product will be liable for any harm caused by the defective item. The concept of market share liability originated in the medical devices industry, where some products were so complex and hard to trace that it was not possible to identify the specific manufacturer responsible for a malfunctioning item. The doctrine shifted the burden away from those who were injured by a defective product and instead, holds all manufacturers who produce a similar product accountable for any harm caused by the defective item. In Arkansas, market share liability is used when a product is defective and the manufacturer cannot be determined. This means that all companies who produce a similar product are held liable for damages caused by the product. In this instance, the court assigns each defendant a percentage of the total liability based on their market share. This is the process known as "market share liability."

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