What is the “risk-benefit test”?

The “risk-benefit test” is a way for courts to decide if a product is defective in a products liability case in Maryland. This test looks at the economic costs and the potential risks associated with a product. When a court decides if a product is defective, they will weigh the risks associated with the product against its benefits. Essentially, the “risk-benefit test” is used to evaluate if the risks outweigh the benefits. For example, let’s say a company made a toy that had sharp edges and could cut small children. The court would look at the potential benefits of the toy, such as fun and play, and then compare them to the potential risks, such as harm to children. If the risks were greater than the benefits, the court would consider the product to be defective and the company may be held liable for any injuries or damages caused by the product. The “risk-benefit test” is an important part of products liability law in Maryland. It helps courts decide if the risks involved with a product make it unreasonable to use or market the product. Ultimately, the “risk-benefit test” helps protect consumers from unsafe or unreasonably risky products.

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What is the “risk-benefit test”?

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