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Simple English definitions for legal terms
risk-utility test
Read a random definition: dischargeability proceeding
A quick definition of risk-utility test:
A risk-utility test is a way to determine if a manufacturer should be held responsible for a product that is dangerous. It looks at whether the benefits of the product's design outweigh the risks, and if there could have been a safer alternative design. If a reasonable person would say that the risks were too great compared to the benefits, the manufacturer may be held liable. This is also called a danger-utility test or risk-benefit test.
A more thorough explanation:
The risk-utility test is a method used to hold a manufacturer responsible for product liability. If the evidence shows that a reasonable person would conclude that the benefits of a product's particular design versus the feasibility of an alternative safer design did not outweigh the dangers inherent in the original design, then the manufacturer can be held liable.
For example, if a car manufacturer designs a car with a faulty brake system that causes accidents, the manufacturer can be held liable if it is determined that a safer alternative design was feasible and the benefits of the faulty design did not outweigh the dangers.
Another example could be a pharmaceutical company that produces a drug with harmful side effects. If it is determined that a safer alternative was feasible and the benefits of the harmful drug did not outweigh the dangers, the company can be held liable.
These examples illustrate how the risk-utility test is used to determine if a manufacturer is responsible for product liability.