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The role of interest groups in products liability law

David S. Gedde (General Business Section, Purdue University North Central, Westville, IN 46391‐9528)
Tantatape Brahmasrene (General Business Section, Purdue University North Central, Westville, IN 46391‐9528)

Managerial Finance

ISSN: 0307-4358

Article publication date: 1 March 1999

498

Abstract

Describes the impact of recent changes in US tort law and identifies four interest groups concerned: manufacturers, insurance companies, consumers and lawyers. Discusses their relative strengths, motivations and influence on judicial decisions, citing relevant liability cases for product‐related injuries due to manufacturing defects, design defects and inadequate warnings. Develops a logistic regression model to relate state adoption of strict liability standards to the relative strength of interest groups and applies it to US data. Suggests that the strength of manufacturers and, more particularly, lawyers is significant; and that liberal states are more likely to adopt strict liability for design defects. Calls for further research on the role of the legal profession in legal change.

Keywords

Citation

Gedde, D.S. and Brahmasrene, T. (1999), "The role of interest groups in products liability law", Managerial Finance, Vol. 25 No. 3/4, pp. 76-89. https://doi.org/10.1108/03074359910766389

Publisher

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MCB UP Ltd

Copyright © 1999, MCB UP Limited

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