Legal Definitions - danger-utility test

The danger-utility test, also known as the risk-utility test, is a method used to determine product liability for manufacturers. It involves weighing the benefits of a product's design against the feasibility of an alternative, safer design, and determining if the dangers inherent in the original design outweigh the benefits.

• A car manufacturer designs a car with a gas tank located in a vulnerable position, making it more likely to explode in a collision. The danger-utility test would consider if the benefits of this design, such as increased fuel efficiency, outweigh the risks of injury or death in the event of a collision.
• A toy manufacturer creates a toy with small parts that could be a choking hazard for young children. The danger-utility test would consider if the benefits of the toy, such as entertainment value, outweigh the risks of harm to children.

These examples illustrate how the danger-utility test is used to determine if a product's design is unreasonably dangerous and if the manufacturer should be held liable for any resulting harm.