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Products liability claims can be based on negligence, strict liability, or breach of warranty of fitness. Generally, a plaintiff must prove that the defendant manufactured the defective product.A component part manufacturer can be held liable for damages caused to a consumer or final product assembler as a result of a product failure. 2. That is not necessarily true. Any entity in the supply chain can potentially be liable for a defective product. How its part may affect the final product in which it is integrated. For example, the California Court of Appeal has held that a manufacturer of a component part, such as a valve or pump in a Navy vessel's propulsion system, was. Your company can't be held liable unless there's a defect in your product or service. 1989) (Under Michigan law component part supplier has no duty to analyze design of completed machine incorporating supplier's non-defective part.) Sperry v. A manufacturer or seller is held strictly liable when a defective product is unreasonably dangerous and has not changed substantially since it was sold.