What is the name of the liability that a manufacturer holds when a product causes harm without regard to fault?

Study for the National Alliance Risk Management Exam. Dive into flashcards and multiple-choice questions, each complete with hints and explanations. Prepare thoroughly for your exam!

The concept of strict liability is central to product liability law, particularly in cases where a manufacturer is held responsible for harm caused by their products, regardless of whether they acted negligently or intentionally. This means that if a product is defective and leads to injury or damage, the manufacturer can be held liable even if they took all reasonable precautions during the production and distribution process.

Strict liability is designed to protect consumers and ensure they have recourse if harmed by a product. This legal principle reflects the idea that manufacturers are in the best position to ensure their products are safe, and therefore they should bear the responsibility for any harm that their products cause. In contrast to negligent liability, which requires a demonstration of failure to meet a standard of care, strict liability does not consider the manufacturer's intent or negligence but rather focuses solely on the nature and defectiveness of the product itself.

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