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Module two focuses on design defects, distinguishing them from manufacturing defects within product liability law. This area of law addresses liability for products that cause economic loss or physical harm. A product may be defective due to an error in the manufacturing process, categorized as manufacturing defects, which are established by comparing the actual product with its intended production standards. If the product fails to meet proper standards, the seller may be liable for resulting injuries. Conversely, a design defect exists when a product, despite being correctly manufactured, is deemed unreasonably dangerous due to its design. Understanding these distinctions is crucial for assessing liability.