Product liability

Question 1

4 criteria for establishing duty of care for negligence

Answer 1

1. D is a manufacturer
2. item causing the damage is a product
3. C is a consumer
4. the product reached C in the form it left D with no possibility of intermediate examination

Question 2

Who is a manufacturer?

Answer 2

Anyone that examines/works on the product before it reaches C (including suppliers if they should’ve tested the product/knew of the defect)

Question 3

Who is a consumer?

Answer 3

Ultimate user of the product, or anyone else that reasonably could’ve been injured by it

Question 4

What is the requirement of intermediate examination?

Answer 4

D must’ve believed there was a likelihood of examination which would reveal the defect in order to not owe the duty

Question 5

Criteria that must be satisfied to sue under the CPA 1987

Answer 5

1. C suffered damage
2. caused by a defect in a product

Question 6

Is the damage to the product itself ever recoverable?

Answer 6

No (pure economic loss)

Question 7

What must be damaged to claim under the CPA?

Answer 7

• death/personal injury
• private property worth over 275
• NOT damage to business property (not “mainly for private use”)

Question 8

How is a “defect” defined under the CPA?

Answer 8

Unsafe (more onerous than reasonable care)

Question 9

Who can be liable under the CPA?

Answer 9

• manufacturer
• own-brander
• importer
• supplier (only if nobody else in the production chain can be identified)

Question 10

Defences under the CPA

Answer 10

• defect attributable to compliance with the law
• D didn’t supply the product to another
• D didn’t supply the product in the course of business
• defect didn’t exist when D supplied it
• development risks (state of knowledge didn’t allow discovery)
• contributory negligence

Question 11

What is NOT a defence under the CPA?

Answer 11

Exclusion of liability