“I recently rented a bounce house for my daughter’s birthday. I am wondering if my sister-in-law was getting out of the bounce house and fell off to the ground and broke her nose, who is liable, if anyone?”
Since you probably signed a liability waiver as part of your rental agreement with the company you rented the bounce house from, the rental company most likely wouldn’t be liable for this type of injury. Likewise, the manufacturer is probably not liable since your sister-in-law’s injury wasn’t the result of a defect with the bounce house itself.
The next question is where was the bounce house located? I’m assuming the bounce house was located on your property, and as such, anyone using the bounce house during your daughter’s birthday could be categorized as a licensee (social guest). You owe social guests a certain level of care while they occupy your property (to warn them of hidden dangers, for example). The bounce house isn’t a hidden danger (they are known to cause injury), and your sister-in-law assumed a certain level of risk by using the bounce house. Since you didn’t say that anyone touched her or otherwise contributed to her fall, it doesn’t seem like anyone is liable for her injury. It seems like it was an accident, pure and simple. Even if she tried to hold you liable and was successful, your homeowners policy may cover the damages – but that would depend on the language of your actual policy.