Final answer:
A software developer's liability for negligence is limited to harmful defects that could have been reasonably detected and corrected through standard software development practices. They are expected to adhere to industry protocols to minimize risks but are not liable for all potential defects.
Step-by-step explanation:
When sued for negligence, a software developer is not held responsible for every product defect that could have been detected that causes customer or third-party loss. Instead, responsibility is limited to harmful defects that could have been detected and corrected through "reasonable" software development practices. This principle suggests that a developer is expected to follow industry standards and best practices to ensure software quality and safety. However, liability does not extend to all possible defects, especially if they are obscure or could not have been reasonably anticipated.
In the case of our counter example with the automobile manufacturer, the company was held liable for the injuries and deaths resulting from the brake failures because they had prior knowledge of the defects and the potential for harm. This concept applies similarly to software development; a developer could be held liable if they were aware of serious defects and did not take reasonable actions to fix them before release.