Which of the following best defines product liability?

Product liability refers to the legal responsibility that manufacturers, distributors, retailers, and others in the supply chain have for injuries or damages caused by their products. The essence of product liability encompasses claims that arise when a product is found to be defective or unsafe, resulting in personal injury or property damage. This definition appropriately captures the broad scope of potential liabilities that can stem from various aspects of a product's safety and efficacy.

The other choices narrow down the broad concept of product liability in ways that do not fully encompass its true meaning. For instance, while marketing and sale practices can indeed lead to certain liabilities, they do not fully capture the range of issues encompassed in product liability. Limiting product liability strictly to design issues overlooks important factors like manufacturing defects and marketing flaws, which are also crucial components of product safety. Additionally, focusing solely on contractual agreements does not address the tort aspect of product liability, which is concerned with harm to individuals rather than merely contractual obligations. Therefore, the selected answer most accurately defines the comprehensive nature of product liability.