Vertical privity concerns the relationship between buyer and remote seller, while horizontal privity concerns non-purchasers such as family members and bystanders. Most states have relaxed or abolished vertical privity for personal injury.
Economic loss claims frequently still require privity.
Alternative Names:
Privity of Contract, Vertical Privity
Why it Matters?
The distinction between personal injury and economic loss claims is where privity still matters, since most states abolished the requirement for injury claims while retaining it for purely economic warranty claims. That makes privity a viable defense against a commercial buyer suing a remote manufacturer for product performance. The economic loss doctrine operates alongside it to channel such claims to contract remedies.
Frequently Confused with
Related terms
Frequently asked questions
Where does privity still matter?
What operates alongside it?
