Business Ethics                       Discussion Project on Product Liability

Consider three different views or theories about the duties of manufacturers to consumers:

1. The “contract” view holds that manufacturers are responsible only for fulfilling the terms of whatever contract they have made with purchasers of their products.

1. The "due care" view holds that manufacturers should also take whatever steps a "reasonable person" would regard as necessary to prevent people from being harmed by using the products and should be liable for injuries caused by their negligence.

1. The “strict liability” (or social costs) view holds that manufacturers should be held liable for any harm which results from a defect in their products, even when they have exercised all due care and the defect or hazard could not have been foreseen. 

Discuss and try to agree on answers to the following questions:

1.  Briefly, what can be said in favor of the fairness of each of these views?

2.  Briefly, what can be said against the fairness of each of these views?

3.  Which view do you think is most nearly correct from an ethical point of view?

4.  What reasons can you give for rejecting the arguments in favor of the other two views?