The chain includes the manufacturer, component suppliers, distributors, wholesalers, and retailers. Strict liability traditionally extends to all commercial sellers in the chain, subject to innocent seller statutes.
Indemnity typically flows upstream to the manufacturer.
Alternative Names:
Distribution Chain, Stream of Commerce
Why it Matters?
Mapping the chain identifies every potentially liable party and the indemnity obligations running among them, which determines who ultimately bears the loss regardless of who the plaintiff sued. Purchase records, distributor agreements, and product markings establish the chain. Foreign manufacturers at the top of the chain frequently cannot be reached, which pushes liability down to domestic importers and distributors.
Frequently Confused with
Related terms
Frequently asked questions
Why map the distribution chain?
What happens with unreachable foreign manufacturers?
