Amazon liable for defective product sold by third-party on its website: Appeals Court

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Credits: Amazon (screenshot from Prime Day Delivers 2017 video) (NASDAQ: AMZN) suffered a critical blow on Thursday after a California Appeals Court ruled against it in a lawsuit involving a consumer who alleged causes of action for strict products liability, breach of an implied warranty, and negligent undertaking.”

The lawsuit arises after consumer Angela Borger suffered severe burns when a replacement laptop computer battery she bought on Amazon exploded. The product was sold by a third-party seller, E-Life, fictitious name used by Lenoge Technology (HK) Ltd. on the e-commerce giant’s platform.  Bolger also sued Lenoge and other defendants in the case.

In the trial court, Amazon argued that the doctrine of strict products liability and any similar tort theory did not apply to it in this case. The company explained that it did not distribute, manufacture, or sell the replacement laptop battery in question. The e-commerce giant claimed that its website is an online marketplace and the seller was Lenoge. The trial court judge agreed and dismissed the case.