Generally, wholesalers are strictly liable for defects in the products they sell. But some courts find no liability for latent or hidden defects if the wholesaler sells the products in exactly the same condition it received them.

C. Retailers Generally, retailers are held strictly liable because they have a duty to inspect and care for the products.

D. Sellers of Used Goods and Occasional Sellers Occasional sellers (garage sales) of used goods are usually not held strictly liable because they are not within the original chain of distribution of the product and their products are sold “as is.” A seller of used goods is, however, strictly liable for any defective repairs or replacements he or she makes.

E. Successor Liability A successor corporation that purchases or acquiring the assets of another is liable for its debts (and perhaps defective products) if the successor corporation is merely a continuation of the original corporation, or the transaction was entered into to escape liability.

F. Market-Share Liability Some courts hold that if multiple manufacturers produce identical products, the injured party may not be able to prove which of the defendant manufacturers caused the injury. In certain cases, e.g., prescription drugs, the court may allocate liability on the basis of each defendant’s share of the market. Market-share liability has been rejected in many jurisdictions and challenged on constitutional grounds.

G. Premises Liability Recently, courts have recognized liability for asbestos-related diseases where a building owner may be found liable for violating its general duty to manage the premises and warn of asbestos dangers.

V. PRODUCT LIABILITY DEFENSES

A. Assumption of Risk When a person voluntarily and unreasonably assumes the risk of a known danger, the manufacturer is not liable for any resulting injury.