Ch 8: Liability for Defective Product Flashcards
What are the 3 options of claim for Defective Products?
Common Law Negligence
Consumer Protection Act (Statutory)
Breach of Contract
What criteria must be fulfilled to prove Duty of Care for a Neglignece Claim for a Defective Product?
- Defendant is a Manufacturer
- Item causing damage is a product
- Claimant is a consumer
- the product reached consumer without intermediate examination
Can a Supplier be a Manufacturer?
Yes - if they had a duty to inspect the goods
What is a Consumer?
Not just the purchaser but anyone who could reasonably have been foreseen to have been damaged
What is the standard for Breach of Duty?
Exercise of reasonable care
What is the main challenge when providing Negligence for a Defective Product?
You can’t just prove damage - you must prove that there was negligence by the manufacturer which resulted in damage.
It is hard to prove negligence when you have no access or knowledge of to the manufacturing facilities.
Who can sue under the CPA 1987?
Anyone who suffers damage caused by a defect in a product
What is the main difference in scope of claimant under the CPA vs a Negligence Claim?
Under the CPA a claimant need not be a foreseeable victim
What is included in “Damage” under the CPA?
Death and Personal Jnjury without limit
Damage to private property over £275
Cannot recover damage to a business property, or the cost of replacing the defective product itself.
What is the difference of causation between Negligence and a claim under CPA?
CPA - Prove that a defect caused the damage
Negligence - Prove that a breach of duty caused the damage
It is much easier to prove causation under the CPA
What is a “Defect” under the CPA?
The safety of a product is not such as a person would generally expect
What are the 4 categories of Defendants under the CPA?
- The Producer/Manufacturer
- An own-brander
- an importer
- a supplier in some circumstances
Is the CPA a strict liability regime?
Yes
There is no need to prove the defendants fault or lack of care. The fact there is a defect is sufficient without proof of fault on the defendants part.
What defenses are available under the CPA?
- Defect was caused by compliance with required regulation
- Defendant did not “supply” the product
- Defendant supplied product outside course of business
- Defect did not exist when the product was supplied
- Manufacturer of Conponents is not liable for performance of the whole
- Development Risks
Why would a Contract claim be a preferred option where it is available?
- Claims can recover Economic Loss (cost of replacing the goods)
- No need to prove fault from the supplier (similar to CPA)
