Risk-Utility Test

Risk-Utility Test

Risk-Utility Test

The risk-utility test weighs factors including the seriousness and likelihood of harm, the availability and cost of a safer design, the effect of that design on utility and price, and the user's ability to avoid the danger.

In most jurisdictions applying it, the plaintiff must identify a reasonable alternative design that was economically and technologically feasible.

Alternative Names:

Risk-Benefit Test, Risk-Utility Balancing

Why it Matters?

This is the dominant design defect framework, and the alternative design requirement is where most cases are won or lost. A plaintiff expert who criticizes a design without demonstrating a feasible safer alternative that would have prevented this injury is vulnerable at both the Daubert stage and on summary judgment. Testing the alternative, rather than debating the existing design, is the productive line of attack.

Frequently Confused with

Related terms

Frequently asked questions

What factors does the risk-utility test weigh?

What factors does the risk-utility test weigh?

The magnitude and probability of harm, the availability, cost, and feasibility of a safer design, the effect on the product's utility, and the user's ability to avoid the risk.

Must the plaintiff prove an alternative design?

Must the plaintiff prove an alternative design?

In most risk-utility jurisdictions yes, though some permit design defect claims without one where the design's danger is manifest.