Final answer:
Proximate cause in liability includes the necessity that the harm caused should be a foreseeable result of the defendant's action or inaction, meaning there must be a direct connection between the conduct and the injury.
Step-by-step explanation:
In a liability situation, the term proximate cause refers to an event sufficiently related to a legally recognizable injury to be held to be the cause of that injury. It includes an important feature where the harm caused must be a reasonably foreseeable result of the defendant's action or inaction. For example, if a car manufacturer knowingly sells cars with defective brakes, the manufacturer can be held liable if it is foreseen that brake failure could lead to accidents and injuries, as in the provided Counter Example Situation 3.
Proximate cause ensures there is a link between the initial act and the eventual harm that is not too remote. In legal terms, this often means that the defendant's actions must not only be the 'cause in fact' but also must be sufficiently connected to the harm such that liability is appropriate. In essence, the defendant's actions must have directly resulted in the harm, and the harm should have been a predictable outcome of those actions.