What is the “risk-utility test”?

The “risk-utility test” is a standard used in California’s products liability law. This test determines whether a product is defective and if so, who is liable for the injury or damage caused. The test involves balancing the risk of harm posed by the product against the utility — or usefulness — of the product. The risk-utility test starts with the manufacturer. If a manufacturer can show that the product’s benefits outweigh its risks to people who use it properly, then the product is not considered defective. However, if the manufacturer cannot show that its product is safe enough when used as intended, then the product may be considered defective. When a product is found to be defective, the courts can then determine who is liable for the injury or damage caused by the product. The court will look at several factors, such as the manufacturer’s negligence or the type of product. It will also consider whether the manufacturer could have reduced or eliminated the risk of harm posed by the product and if the product is still useful. Ultimately, the risk-utility test is a subjective standard used to evaluate the safety of a product in the context of its value. Through this test, manufacturers must demonstrate that their products are safe enough to use as intended and that their benefits outweigh the risks for consumers.

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What is the “risk-utility test”?

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