Georgia separates entities in the chain of commerce into two categories for product liability purposes. Manufacturers face strict liability under O.C.G.A. § 51-1-11(b)(1). Product sellers do not. The distinction, codified in O.C.G.A. § 51-1-11.1 (enacted in 1987 and applicable to causes of action accruing on or after July 1, 1987), shapes which defendants can be named under which theories.
| Category | Strict liability under § 51-1-11(b)(1)? | Negligence claims? |
|---|---|---|
| Manufacturer | Yes | Yes |
| Product seller (§ 51-1-11.1) | No | Yes |
The statute defines “product seller” broadly #
Under O.C.G.A. § 51-1-11.1(a), a product seller is a person who, in the course of a business conducted for that purpose, engages in any of the following activities:
- Leases or sells and distributes products
- Installs products
- Prepares, blends, packages, or labels products
- Markets products
- Assembles products pursuant to a manufacturer’s plan, intention, design, specifications, or formulation
- Repairs or maintains products
- Otherwise places products in the stream of commerce
The definition excludes entities that, because of their activities, fall within the broader definition of “manufacturer.” A manufacturer that also performs seller functions remains a manufacturer.
Strict liability is confined to actual manufacturers #
Under O.C.G.A. § 51-1-11.1(b), a product seller is not a manufacturer for purposes of strict liability under § 51-1-11, and is not liable as such. Georgia federal courts have applied this strictly. In Freeman v. United Cities Propane Gas of Ga., Inc., 807 F. Supp. 1533 (M.D. Ga. 1992), a propane gas retailer and distributor were held not to be manufacturers. The Georgia Court of Appeals confirmed the seller/manufacturer line in Ream Tool Co. v. Newton, 209 Ga. App. 226, 433 S.E.2d 67 (1993), holding that a mere product seller is not a manufacturer and is not liable as a manufacturer on grounds of strict liability.
The Supreme Court of Georgia further refined the line in Farmex Inc. v. Wainwright, 269 Ga. 548, 501 S.E.2d 802 (1998), holding that a corporation that purchased the assets of a manufacturer and sold (but did not itself manufacture) a product of the predecessor’s design was a product seller, not a manufacturer subject to strict liability for product defects.
Labeling, assembling, or distributing does not create manufacturer status #
Georgia courts have addressed several specific scenarios where defendants argued for or against manufacturer status:
- An entity that affixes its own label to a product made by another and sells it under its own name is a product seller, not a manufacturer (Alltrade, Inc. v. McDonald, 213 Ga. App. 758 (1994); Buford v. Toys R’ Us, Inc., 217 Ga. App. 565 (1995))
- A company that imported and marketed pliers by describing what it wanted to foreign manufacturers was a product seller, not a manufacturer (Schneider v. Tri Star Int’l, Inc., 223 Ga. App. 85 (1996))
- A distributor of bagels baked by another was not an ostensible manufacturer absent evidence that the recipe was based on the distributor’s specifications (Thomasson v. Rich Prods. Corp., 232 Ga. App. 424 (1998))
- Pharmacists and pharmacies that package and label drugs manufactured by others are product sellers (Robinson v. Williamson, 245 Ga. App. 17 (2000))
The line turns on active control over design or manufacture #
The unifying principle in these cases is whether the entity exercised active control over the product’s design, manufacture, or specifications:
- Active role: Designing, formulating, manufacturing, or specifying production = manufacturer
- Passive role: Distributing, retailing, labeling, packaging without specification = product seller
An entity that crosses from passive to active by specifying designs, formulating products, or substantially controlling manufacture moves from seller to manufacturer for liability purposes.
Sellers remain liable under negligence #
The seller exclusion under § 51-1-11.1 applies only to strict liability under § 51-1-11. Product sellers can still be sued for their own negligence, including:
- Negligent failure to inspect when inspection was reasonable
- Negligent continued sale after learning of defects
- Negligent failure to warn buyers of known risks
- Negligent modification of the product before sale
- Negligent assembly or installation
A negligence claim against a seller requires proof of the seller’s own breach of a duty of care, not the manufacturer’s defective design or production.
Implications for plaintiffs choosing defendants #
The statute creates structural incentives in product liability cases. Plaintiffs commonly:
- Plead strict liability against the manufacturer (the entity with primary design and production responsibility)
- Plead negligence against sellers in the distribution chain when the seller’s own conduct contributed
- Use sellers as sources of information about the manufacturer when the manufacturer is foreign or difficult to serve
- Pursue indemnity claims by sellers against manufacturers when sellers face liability for a manufacturer’s defect
The manufacturer/seller distinction does not eliminate seller exposure entirely, but it concentrates strict liability on the manufacturer and pushes seller liability into the narrower channel of seller-specific negligence.
Component part manufacturers are manufacturers for their components #
A specific subcategory: manufacturers of component parts that are incorporated into final products are manufacturers for the component they produced. A brake manufacturer whose brakes were installed in a vehicle is a manufacturer subject to strict liability for the brakes, even though the vehicle manufacturer is also a manufacturer for the finished vehicle. This produces overlapping but distinct strict liability claims against multiple entities in component-heavy products.
This article is for informational purposes only and does not constitute legal advice. Personal injury cases turn on specific facts and applicable law that vary by case. If you have been injured in Georgia and want to understand your legal options, consult a licensed Georgia personal injury attorney.