What is the “risk-utility test”?

The “risk-utility test” is a legal tool used to assess the liability of a product manufacturer for injuries suffered by someone who used the product. This test is used to evaluate products liability law in Oregon. It is a two-pronged test that looks at the risks associated with a product versus the utility, or usefulness, of the product. The first prong of the test looks at the risks associated with the product. If the risks associated with a product are unreasonable then the product is generally considered to be defective. The risk of a product must be weighed against the utility of the product. The higher the risk of the product, the higher the level of utility that is expected to offset the elevated risk. The second prong looks at the utility of a product. This prong assesses the usefulness of a product, and how much value the product provides. If a product is found to provide a significant level of value then the manufacturer may not be liable for an injury suffered by a consumer. The utility of a product must be weighed against the risk of the product. The greater the utility of the product, the more the risk is expected to be offset. The risk-utility test is an important factor in determining whether or not a manufacturer will be held liable for a product injury. This test is used to assess the risks and utility of a product and assess whether the manufacturer was negligent when producing it.

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What is the “risk-utility test”?

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