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36. Does the farmer have a viable strict products liability claim against the manufacturer for recovery of his lost revenue?
A dairy farmer bought a milking system for his cows from an independent distributor. The farmer did not communicate with the manufacturer of the milking system or any of its agents before purchasing the system. The distributor knew that the farmer had several lucrative contracts with milk wholesalers, but the manufacturer was unaware of these contracts. The system never operated properly because of a manufacturing defect, and as a result the dairy farmer lost much of the wholesale contract revenue.
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B is incorrect. The manufacturer's lack of knowledge about the farmer's contracts is irrelevant. An injured party may not recover for purely economic loss caused by a defective product.
C is incorrect. The statement is true, but it does not entitle the farmer to damages. The contract law rule of consequential damages is irrelevant to the resolution of a tort claim.
D is incorrect. The farmer cannot recover on a strict products liability theory because he has suffered only economic loss.