Who Is Liable for a Defective Product: Maker, Seller, or Both?

The company whose name is on the box is rarely the only one responsible, and sometimes it is not even the one that made the product. Who is liable for a defective product runs the length of the chain of distribution: the manufacturer, the maker of the component that failed, the importer that brought it into the country, the distributor, and the retailer that sold it. Each can be sued, each will point at the others, and the practical question is which of them you can reach, serve, and collect from. CLP’s defective product practice maps that chain before the first demand letter goes out, because the wrong defendant list is expensive to fix later.

The manufacturer and the brand on the box

The manufacturer is the primary defendant in every product case. The complication is that the brand you bought is often not the manufacturer. Store brands, private labels, and many consumer electronics are made by a contract manufacturer and sold under another company’s name. The law treats a company that puts its name on a product as if it made it, so the brand owner is liable alongside the actual maker.

Foreign manufacturers raise a different problem. Many products sold here are made by companies with no U.S. presence, which means service of process abroad under treaty procedures, jurisdictional fights, and judgments that are hard to collect. That is why the importer, the U.S. distributor, and the retailer matter so much: they are here, they are insured, and in most jurisdictions they are liable for the defect even though they did not create it.

Component makers and assemblers

When a product fails because one part failed, the company that made that part is liable for the part’s defect, and the company that assembled the final product is liable for choosing and integrating it. A tire maker is liable for a tread separation; the vehicle manufacturer is liable for the vehicle. A battery cell supplier is liable for a cell that shorted; the e-bike company is liable for the pack and the bike. A component maker that supplied a sound part according to the assembler’s specifications generally escapes, unless it participated substantially in the design of the finished product. Sorting out which part failed and why is engineering work, and it depends on having the product, as we explain in what to keep after a defective product injury.

Distributors, importers, and retailers

In Washington, DC, and New York, every seller in the business of selling the product is strictly liable for a defect that existed when the product passed through its hands, whether or not it could have discovered the defect. The retailer that sold a sealed box is liable, and it then seeks indemnity from the distributor, which seeks it from the manufacturer. Virginia does not recognize strict liability, but its implied warranty of merchantability reaches retailers and distributors in much the same way, and Virginia has abolished the privity requirement for personal injury claims, so a person who did not buy the product can still sue the seller. The difference between these theories is explained in strict liability versus negligence for a defective product claim.

Plaintiffs name sellers for practical reasons: they anchor the case in a local court, they are solvent and insured, and they can be served tomorrow. Some states have innocent seller statutes that let a retailer out if the manufacturer is available and answers for the defect, so the retailer’s presence in the case can change as it goes.

Online marketplaces, used goods, rentals, and installers

The law here is less settled. Whether an online marketplace that lists third-party sellers’ products is itself a “seller” for liability purposes is being decided case by case, with courts split and the answer depending on how much control the platform exercised over the sale, the shipping, and the payment. Sellers of used goods are generally not strictly liable, because they did not put the product into the stream of commerce, though a used-goods dealer that reconditioned the product can be liable in negligence. Rental companies and lessors are treated like sellers in most jurisdictions. Installers and repair shops are liable in negligence for their own work, which is a separate claim from the product’s defect.

Employers, hospitals, landlords, and other non-sellers

If a defective machine injured you at work, workers’ compensation is your only claim against your employer, but it does not protect the machine’s manufacturer, and a third-party product claim is often the larger recovery. If an implanted device or a drug caused the injury, the hospital and surgeon are generally treated as providers of a service rather than sellers of a product, so the claim against them is for negligence under the rules on our medical negligence page, while the device maker faces a product claim. A landlord who supplied a defective appliance is liable in negligence if the landlord knew or should have known of the hazard, not under product liability.

Deciding who is liable for a defective product and where to sue

Each defendant has to be reachable in the court you choose, which depends on where it does business and where the product was sold or caused injury. Each one gets the same limitations period: two years in Virginia and three in DC and New York for the injury claim, four years from delivery for warranty. Mass-market products with many injured users sometimes end up in consolidated federal proceedings, which changes the pace and the strategy. A recall, if one exists, often identifies the parties the manufacturer itself considers responsible, as covered in does a product recall prove the product was defective. Vehicle component failures overlap with our car, truck, and motorcycle accident practice.

If a product injured you, a consultation with Capitol Law Partners can identify every company in the chain that may be liable and which ones are worth pursuing. Schedule a consultation.

This article is for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by this communication.

Attorney Sena Sahin. Clear advice for individuals, families, and business owners.

Need help with this topic? See our defective product liability page or schedule a consultation.