Facts
- Lou Bachrodt Chevrolet Co., a retail dealer, sold a used 1965 Chevrolet to Cornelius Spradlin on June 11, 1971.
- On September 3, 1971, John Elder drove the car near Rockford, Illinois and braked to avoid a stopped vehicle.
- The car crossed the center line, struck an oncoming van, left the roadway, and hit an electrical pole.
- Two children nearby were struck; Maradean Peterson (11) was killed and Mark Peterson (8) suffered severe injuries, including amputation of his left leg.
- James A. Peterson sued the dealer, alleging the car had defective brakes and other defects when it left the dealer’s control and that the defects caused the accident.
- The claim against the dealer proceeded on a strict products liability theory for selling a defective used vehicle.
Issues
- Whether strict products liability in tort applies to a dealer that merely resells a previously used automobile when the dealer is outside the original production and marketing chain and is not alleged to have created or known of the defect.
Decision
- The Illinois Supreme Court held that the complaint failed to state a strict products liability claim against the used-car dealer.
- The court declined to extend strict liability to a seller of previously used products under the alleged circumstances.
- The dealer could not be held strictly liable where it did not participate in the original distribution chain and was not alleged to have created or known of the defect.
Legal Principles
- Strict products liability is primarily aimed at entities that participate in the original producing and marketing enterprise for the product.
- A seller of used goods outside the original chain of distribution is not subject to strict liability absent allegations that the seller created the defect or had knowledge of it.
- Policy concerns include avoiding making used-product dealers insurers against unknown defects in used items; injured plaintiffs may still pursue negligence theories where supported by proof.
Conclusion
The court refused to impose strict products liability on a used-car dealer that resold a previously used vehicle without allegations tying the dealer to the product’s original distribution chain or to defect creation or knowledge, limiting strict liability’s reach in Illinois to actors connected to the original marketing enterprise.