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Parties Responsible for a Defective Product

In order for there to be an instance of product liability, a product must be sold on the market. In the past, a contractual relationship, referred to as privity of contract, had to be present between a product supplier and the person who purchased and was harmed by the product. This privity of contract allowed the person injured by the product to receive compensation. Today, most states do not require this contract, and the victim does not necessarily have to buy the product to be eligible to recover damages; instead, anyone who potentially could have been affected by the defective product can be compensated as long as someone else bought the product.

Anyone linked to the distribution of a product can be perceived as the responsible party. This includes manufacturers, wholesalers, retail outlets, and even someone in charge of assembling or installing the product. In order for strict liability to apply, the exchange of a product must occur somewhere in the professional supply chain. For example, someone who sells a product on the secondary market (e.g., garage sale) cannot be held accountable for product liability.