What is a “market share” theory of liability?

A “market share” theory of liability is a concept in products liability law that holds a company liable for damages caused by a product even if they didn’t make that product. The “market share” theory states that if a certain product is defective and a certain company has a large share of the marketshare of that type of product, they are liable for any damages that the product causes even though they may not have made the product. In Washington, this theory of liability has been accepted by the courts, although it’s not as widely accepted as in other states. Generally, it applies when a plaintiff is unable to identify which company made the product that caused the injury or damage. In this case, the plaintiff is still able to seek damages from the companies that have a large share of the relevant market since they can be presumed to have contributed to the defective product. The “market share” theory of liability has been used in Washington to hold companies liable for products that were made by other companies, but these cases have typically involved pharmaceutical companies or companies in similar industries. The courts have taken a more conservative approach in other industries and have typically refused to hold companies liable unless they had some direct involvement with the product.

Related FAQs

What is a “failure to warn” claim?
What are some common defenses used by defendants in product liability cases?
What is the difference between negligence and strict liability?
What is a “market withdrawal”?
What types of damages can be recovered in a product liability claim?
What is the legal standard for determining whether a product is dangerous or defective?
How do juries decide product liability cases?
What are the differences between a manufacturer’s warranty and a product liability claim?
How does the law distinguish between a product’s design and its warnings?
What is “strict liability”?

What is a “market share” theory of liability?

Related FAQs

Related Blog Posts