IIf a product is "unreasonably dangerous for its intended use or [Get this!] a reasonably foreseeable misuse" the manufacturer, distributor, and retailer are liable in all most U.S. states states for injuries proximately resulting.
For fifty years the law has changed in one direction only: in favor of the plaintiff and his sharecropping lawyer. One plaintiff's firm in Ohio contributes more to politicians than all the defense firms COMBINED. (Defense fees have gone up less than 20% in thirty years.) It's the best legal system money can buy. The more they make, the more they get the law changed so they can make more.
And they have no or relatively little "skin in the game," because, unlike Europe, the loser does not pay the legal fees of the winner. Might as well sue.
Why do you think the sharpeners warn you that (GASP!) they make knives sharp? Why the warning on the very top of the stepladder that if you stand there you might fall? Why does the iron say to remove the clothes from your body before ironing? Are the manufacturers crazy? No balls? Hardly. These warnings are all markers of lawsuits that were lost by the manufacturers and sellers for big bucks. McDonalds? Hot Coffee is --- hot? $Millions? Remember?
While you weren't looking, the plaintiff's bar stole a good portion of your country. The nanny state is not just just the product of the legislative branch. The courts are doing their level best to "compensate" every injury to "spread loss." (See also "spread wealth.")
Grow a pair? That is BS unless it's your money is on the line. These companies have owners and employees who would kinda' like the company to survive. Many have not. They died of lawsuititis,
I can hire an expert to say that any axe intended for cutting is unreasonably dangerous per se because it is not a saw. He'll be a Phd in industrial design for a prestigious university in the state where the suit is going to happen.
A 19-year-old girl fainted and drove her Buick into a 24" diameter Oak tree at 50 mph at a time before air bags and without having bothered to put on her safety belt. Her expert engineering Phd testified that Buick should have built the car to protect her from serious injury in such a crash. (Buick looked like a bomb hit it - a big bomb.) That case went all the way to the jury, which first voted 5-3 for the plaintiff but ended up voting 6 -2 that GM was not responsible for the girl's injuries. And it's gotten thirty years worse since that trial.
More horror stories on request, but you should find them yourselves via Goggle, if you care.
I think that's the problem. We tend to use Google for legal research way too much, and it leads us to perpetuate rumors and half truths. After a while we forget that there was even a truth to begin with. I certainly don't blame us for using Google while we surf the net, but I would expect a real company to use a lawyer instead of Google.
The legal standard you mentioned above is correct (with variations in each state), and I find it to be a completely reasonable one. If while splitting wood my axe hits the ground, causing it to explode and take off my arms (yes, an absurd hypothetical), I don't think the company should be able to get away by just saying "oh, you were not supposed to hit the ground". It is a foreseeable misuse, and I think they should be held liable, and will be similarly held liable in every other western country.
Conspiracy theories aside, every other axe manufacturer manages to sell axes in the US with absolutely no problem, and many of them have done so for centuries. Maybe it is same amazing luck, or maybe we are just exaggerating the problems with our legal system.