Integrated-System Rule

Definition

Rule providing that the economic-loss doctrine, which generally precludes a purchaser of a defective product from recovering in tort for economic losses, applies if the defective product is part of an integrated system and the product damages the system. The economic-loss doctrine does not apply if a defective product causes damage to other property; however, if the defective product is a component of an integrated system and the defective component damages the system or other system components, the damage is considered damage to the product itself.