product liability

Question 1

What does the Consumer Protection Act 1987 govern?

Answer 1

provides basis for claiming in relation to damage caused by defective products.
It does not replace any claim in negligence or breach of contract, so whenever faced with a problem involving a defective product, a practitioner should consider negligence, breach of contract and the Act.

Question 2

Who can make a claim under CPA 1987?

Answer 2

s2(1):
where any damage is caused wholly or partly by a defect in a product, every person to whom subsection (2) below applies shall be liable for the damage.
1- producer
2- anyone who put their name on product / trade mark
3- anyone who imported product in UK
– suppliers also will be liable s2(3)

Question 3

Define product under CPA 1987.

Answer 3

means any goods or electricity

Question 4

Define defect under CPA 1987.

Answer 4

whether or not something is defective depends on what people are ‘generally entitled to expect’.
- product including packaging as a whole
- look at instructions

Question 5

What is meant by damage under CPA 1987?

Answer 5

includes:
- personal injury
- damage to private property over £275
Excludes:
- damage to commercial properties
- pure economic loss

Question 6

Who can bring a claim under CPA 1987?

Answer 6

Consumers of the product
- Anyone suffering damage as a result of the defect can sue.

Question 7

what are the defences to product liability?

Answer 7

1- defect didn’t exist at relevant time
2- defect arising as an inevitable consequences of complying with law
3- D didn’t supply product in course of business (gift eg)
4- defect arose as result of ordinary wear and tear/misuse by C
5- ‘state of knowledge’ at time of production was one that no one could have known

Question 8

does exclusion clauses apply?

Answer 8

S 7 prohibits any exclusion or limitation of liability under the provisions of the Act

Question 9

What are the limitations for a product liability claim under the CPA?

Answer 9

claim must be brought within 3 years of:
- date of injury / damage occurred
- when C became aware or should have reasonably been aware

Question 10

Where does duty of care stand in product liability?

Answer 10

So the manufacturer owes a duty not only to the final purchaser at the end of the supply chain, but also to other users of the product.
- ALSO parties that come in contact with product (without buying or consuming it)

Question 11

where does pure economic loss stand within product liability?

Answer 11

When the loss being considered is the loss of the product itself (so cost of replacement is sought), this is pure economic loss. This is not, generally, recoverable.

Question 12

How is breach established for product liability?

Answer 12

C must establish that manufacturer breached its duty.
- Standard of care is that of reasonable manufacturer who takes all sensible precautions

Question 13

How is causation and remoteness established for product liability?

Answer 13

C to establish causal link between breach and damage using ‘but for’ test
- if consumer is advised to test product before use, chain may be broken.

remoteness= Wagon mound - damages not be too remote

Question 14

What defences are available under product liability?

Answer 14

• consent
• contributory negligence
• Excluding or limiting liability not allowed for death or PI caused by its negligence

Question 15

What remedies are available under product liability?

Answer 15

C can recover damages for PI and property damage and consequential economic loss

*Cannot recover for pure economic loss

Question 16

Applying the rules of negligence, can a party recover in negligence in relation to the loss of the product itself?

Answer 16

No – this would ordinarily be considered pure economic loss, and not recoverable.