Georgia’s product liability strict liability statute applies only to manufacturers and others who are in the business of selling the type of product that caused the injury. A casual seller who is not in the business of selling the product is not subject to strict liability under O.C.G.A. § 51-1-11. Retailers and distributors who regularly sell the product in the ordinary course of commerce are covered. The ‘in the business of selling’ limitation is significant because it excludes individual resellers and private parties from strict liability exposure, focusing the doctrine on commercial actors in the distribution chain who are best positioned to absorb or spread the risk of product defects. The rise of online marketplace sellers (such as third-party sellers on Amazon) has created an evolving area of Georgia product liability law, as courts consider whether the marketplace platform qualifies as a seller “in the business of selling” the product or merely as a facilitator of the transaction between the third-party seller and the consumer. The Georgia Supreme Court has addressed the scope of strict liability under O.C.G.A. § 51-1-11 in multiple decisions, confirming that the statute targets commercial sellers in the distribution chain and analyzing the relationship between strict liability and negligence theories for commercial manufacturers.
62.1. How does Georgia determine whether a defendant is in the business of selling a particular type of product?
The determination examines whether the defendant regularly engages in selling the type of product at issue as part of its commercial operations. A hardware store that sells power tools is in the business of selling power tools. A law firm that sells surplus office furniture in a one-time liquidation is not in the business of selling furniture. The frequency of sales, the commercial purpose of the activity, and whether the defendant holds itself out as a seller of the product type are the key factors.
62.2. Does a business that sells a product as an incidental part of a service transaction qualify for strict liability in Georgia?
When the sale of a product is merely incidental to the provision of a service, the seller may not be considered in the business of selling that product. A restaurant that serves contaminated food may be treated differently from a grocery store that sells the same product. The analysis examines whether the primary transaction was a sale of goods or a provision of services. If the product sale is incidental to the service, strict liability may not apply, and the plaintiff proceeds under negligence or warranty theories.
62.3. How does Georgia treat used product dealers under the in the business of selling standard?
Used product dealers who regularly sell a particular type of used product are generally considered to be in the business of selling that product for strict liability purposes. However, the analysis may differ when the dealer cannot reasonably be expected to detect defects in used products. The dealer’s knowledge of the product’s condition, the extent of any refurbishment, and the dealer’s representations about the product’s safety all factor into the analysis. A dealer who sells used products as-is without inspection may face different liability exposure than one who refurbishes and resells.
62.4. Can a franchisor be strictly liable in Georgia for defective products sold through franchisee locations?
A franchisor’s strict liability exposure depends on the degree of control the franchisor exercises over product selection, quality standards, and the sales process. If the franchisor mandates that franchisees sell specific products, controls the specifications, and presents a unified brand to consumers, the franchisor may be treated as being in the business of selling those products. If the franchisee independently selects products without franchisor direction, the franchisor’s strict liability exposure is reduced.
62.5. How does Georgia handle strict liability when the product was sold through an online marketplace rather than a traditional retail chain?
Online marketplace liability is an evolving area. The question is whether the marketplace is a seller or merely a platform facilitating transactions between third-party sellers and consumers. If the marketplace takes title to the product, controls pricing, or presents itself as the seller, it may be in the business of selling for strict liability purposes. If the marketplace functions solely as a listing service without involvement in the transaction, it may not qualify. Georgia courts analyze the marketplace’s actual role in the transaction.
62.6. Does Georgia impose strict liability on component part manufacturers when the defective component was incorporated into a finished product?
Component manufacturers are in the business of selling their components and can face strict liability when the component itself is defective. If the defect originated in the component and caused the injury, the component manufacturer is liable regardless of whether the finished product manufacturer also bears responsibility. The component manufacturer may argue that the finished product manufacturer’s integration of the component created the hazard, shifting liability away from the component supplier. The analysis focuses on where the defect originated.
62.7. How does the in the business of selling standard apply to a hospital that dispenses a defective medical device during a procedure?
Georgia courts generally treat hospitals as providers of services rather than sellers of products. When a hospital implants a defective medical device during a procedure, the device use is incidental to the medical service provided. The hospital may not be considered in the business of selling the device for strict liability purposes. The plaintiff’s product liability claim would typically be directed at the device manufacturer or distributor rather than the hospital, though the hospital may face malpractice liability for its selection and use of the device.
62.8. What is the effect of the seller’s lack of knowledge of the defect on strict liability exposure in Georgia?
Strict liability does not require the seller to have known of the defect. The entire premise of strict liability is that the seller is liable for selling a defective product regardless of fault or knowledge. A retailer who had no way of knowing about a latent manufacturing defect is still strictly liable if it was in the business of selling the product. The seller’s lack of knowledge may be relevant to other claims, such as negligence, but it is not a defense to strict liability.
Disclaimer: This content is provided for informational and educational purposes only and does not constitute legal advice. No attorney-client relationship is formed by reading this material. Georgia law is subject to change through new legislation and court decisions. Always consult a qualified Georgia attorney for advice specific to your situation.