What is the “consumer expectation test” and “risk-utility test”?

The consumer expectation test and risk-utility tests are two important tests used in North Carolina’s products liability law. The consumer expectation test is meant to protect consumers from any injuries they may incur from using a product. It is based on the idea that if a consumer expects a certain level of safety and a product fails to meet that expectation, then the manufacturer may be liable for any damages incurred. The risk-utility test is used to determine if a manufacturer is liable for any harm caused by their product. This test looks at the risk posed by a product and whether or not it outweighs the benefit resulting from its use. This test considers factors such as the magnitude of the potential harm, the probability that it will occur, the cost of preventing the harm, the value of the product, and the cost of replacing it. If the risk outweighs the utility of the product, then a court may find the manufacturer liable for any damages caused by the product.

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What is the “consumer expectation test” and “risk-utility test”?

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