Product liability losses resulting from defect or nondisclosure of hazards, may net economic loss compensation for the buyer or victim of harm. While physical injuries resulting from contact or use of a defective product usually are filed as negligence tort, the pain and suffering incurred in the aftermath of those injuries may also be filed for as Intangible Economic Losses.
Products with defects also may be held in breach of warranty if normal uses reveals a manufacturing defect, or if the product cannot be used to fulfill its intended purpose.
Product warranties are agreements between legal authorities and producers of consumer goods. There are generally three types of warranties under the Uniform Commercial Code (UCC). These warranties are express warranty, implied warranty or merchantability, and implied warranty of fitness for particular purpose. All US states have adopted the UCC in whole or in part.
A purchaser of a product warranty is entitled to hold the warranty and collect reimbursement or replacement from the manufacturer. If the company disputes the claim, the claimant may sue the company for the tort of Breach of Warranty.
Intangible Economic Losses:
Tort lawsuits for product liability may often be for harm done to the person or property from use of a defective product, yet there are areas of tort litigation available for those seeking compensation for intangible economic losses. Intangible Economic Losses generally describe damages claimed from pain and suffering in nonfatal product liability.
The word "intangible" means non-material or non-physical. It is to be noted that, although Intangible Economic Losses have the least-precise legal definitions, they are some of the most successful torts heard before juries in the United States.