Government-contract defense refers to a legal principle allowing a supplier of goods to the federal government, to be exempted from a civil liability. This defense is only applicable when the supplier has adhered to reasonably precise specifications which are approved by the government. This defense has been most successfully asserted by government contractors who were required to produce products in compliance with military specifications. [In re All Maine Asbestos Litigation, 575 F. Supp. 1375, 1378 (D. Me. 1983)]
This defense can only prevail when the following conditions are satisfied :
1. The specifications for the product has been provided by the government ;
2. The product manufactured by the supplier has met with the government's specifications in all material respects;
3.The government had more knowledge than the supplier about the hazards associated with the product.