Product Liability Flashcards

1
Q

What are the three areas of law relevant to claims for defective products, and when is tort law preferred?

A
  1. Tort of negligence: Preferred when the claimant is not the buyer or when contract law is unavailable.
  2. Consumer Protection Act (CPA) 1987: Provides statutory strict liability for defective products.
  3. Contract law: Limited to cases where:
    • The claimant is a party to the contract.
    • The claimant has third-party rights under the Contracts (Rights of Third Parties) Act 1999.

Example: Tort law is often used if the supplier is out of business or the claimant is harmed by a product they received as a gift.

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2
Q

What must a claimant prove to establish a negligence claim for defective products?

A
  1. Duty of care: The defendant owed the claimant a duty of care.
  2. Breach of duty: The defendant failed to take reasonable care.
  3. Causation: The breach caused the harm (using the “but for” test).
  4. Remoteness: The harm was reasonably foreseeable.

Case Example: In Donoghue v Stevenson (1932), a manufacturer owed a duty of care to a consumer who became ill after consuming a ginger beer containing a dead snail.

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3
Q

What are the four elements required to establish a duty of care under the narrow rule in Donoghue v Stevenson (1932)?

A
  1. The defendant is a ‘manufacturer’.
  2. The item is a ‘product’.
  3. The claimant is a ‘consumer’.
  4. The product reached the consumer without a reasonable possibility of intermediate examination.

Example: In Donoghue v Stevenson, the sealed bottle of ginger beer met the criteria for intermediate examination, making the manufacturer liable.

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4
Q

How is the term ‘manufacturer’ defined broadly under the narrow rule, and who may fall under this category?

A

A manufacturer includes:
1. Repairers (e.g., Haseldine v Daw & Son Ltd [1941] – faulty lift repair).
2. Installers (e.g., Stennett v Hancock [1939] – defective truck wheels).
3. Suppliers if:
* They should reasonably test or inspect products.
* They know of a defect/danger (e.g., Andrews v Hopkinson [1957] – car supplier liable for defective steering).

Example: A local garage servicing a car or a heating engineer installing a boiler would be considered manufacturers under this rule.

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5
Q

What qualifies as a ‘product’ under the narrow rule in Donoghue v Stevenson (1932)?

A

A product includes any item capable of causing harm, including:

  1. Consumables (e.g., ginger beer).
  2. Non-consumables (e.g., cars, machinery).
  3. Items associated with the product (e.g., packaging, labels, instructions).

Case Example: Mislabeled chemicals used in a school experiment (Kubach v Hollands [1937]) were considered products.

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6
Q

How does the concept of intermediate examination affect liability under the narrow rule?

A

A manufacturer is not liable if:
1. There was a reasonable possibility of intermediate examination.

  1. The defect should have been identified.

Case Examples:
* Donoghue v Stevenson (1932): A sealed, opaque bottle of ginger beer precluded intermediate examination.
* Kubach v Hollands (1937): A chemical provided with explicit warnings escaped manufacturer liability because an intermediate test was expected.

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7
Q

Who qualifies as a ‘consumer’ under the narrow rule, and what are examples of eligible claimants?

A

A consumer includes:
1. The end-user of the product.
2. Anyone reasonably foreseeable as being harmed by the product.

Example: In a car accident caused by defective brakes:
* Passengers (Pamela and Sandra).
* Pedestrians (William).
* Property owners (Jennifer).
All qualify as consumers under Donoghue v Stevenson’s neighbor principle.

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8
Q

What types of losses are recoverable under Donoghue v Stevenson’s narrow rule?

A
  1. Recoverable: Injuries to persons and damage to property other than the defective product.
  2. Not recoverable: Pure economic loss, such as:
    * Replacing the defective product.
    * Cost of repairing the defect.

Example: Amanda’s kitchen curtains (property damage) and burns (injury) are recoverable, but replacing the toaster (pure economic loss) is not.

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9
Q

How can a claimant prove a breach of duty in defective product cases?

A
  1. Evidence of lack of reasonable care in the manufacturing process.
    1. Courts may infer breach if defects are unexplained (e.g., Grant v Australian Knitting Mills [1936] – dermatitis caused by sulphur in underwear).
    2. Proof must eliminate alternative causes.

Example: In Daniels v R White & Sons (1938), the claimant failed to prove breach despite the presence of carbolic acid in lemonade because no specific negligence was identified

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10
Q

What defenses can manufacturers use in defective product claims?

A
  1. Consent (volenti non fit injuria): The claimant knowingly accepted the risk.
  2. Exclusion of liability:
    * Not valid for death or personal injury under the Unfair Contract Terms Act 1977 (UCTA) or Consumer Rights Act 2015 (CRA).
  3. Contributory negligence: The claimant’s own actions contributed to the harm.

Example: Mike continued to use a hammer with a loose head and was injured. His damages may be reduced due to contributory negligence.

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11
Q

How does causation and remoteness apply in product liability cases?

A
  1. Causation: The breach must be the actual cause of harm (using the “but for” test).
  2. Remoteness: The harm must be a reasonably foreseeable consequence (The Wagon Mound test).

Case Example:
* In Evans v Triplex Safety Glass Co Ltd (1936), causation failed because the windscreen shattered 12 months after installation, and no link was established to the manufacturer’s negligence.

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12
Q

How can the standard of care for manufacturers vary based on circumstances?

A

Factors affecting the standard include:
1. Magnitude of foreseeable risk.
2. Gravity of potential injury.
3. Cost and practicality of precautions.

Example: A reasonable hydraulic engineer or ginger beer manufacturer must meet industry standards of care to avoid liability.

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13
Q

Who can sue under the Consumer Protection Act 1987, and how does this differ from negligence claims?

A

Under the CPA 1987, anyone who can establish:
1. Damage (death, personal injury, or property damage exceeding £275).
2. Caused by a defect.
3. In a product.

Key Differences from Negligence:

  • The claimant does not need to be the buyer, direct user, or foreseeable victim.
  • Class of claimants is broader, including bystanders or anyone injured by the defective product.

Example: A pedestrian injured by a lawnmower explosion (without using or owning the product) can sue under the CPA 1987.

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14
Q

What types of damage are recoverable under the CPA 1987?

A
  1. Personal Injury (unlimited): Includes any disease or impairment of physical/mental health.
  2. Private Property Damage: Recoverable if it exceeds £275.
  3. Exclusions:
    * Damage to business property.
    * Pure economic loss (e.g., cost of replacing the defective product).

Case Example:
* Clive’s antique clock is recoverable as private property damage exceeding £275.

  • His business-use computer and the defective television (pure economic loss) are not recoverable under the CPA 1987.
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15
Q

How is causation established under the CPA 1987, and how does it differ from negligence?

A

The claimant must prove the defect caused the damage, applying the ‘but for’ test.

Differences from Negligence:
* Negligence focuses on proving a breach of duty.
* CPA 1987 emphasizes the defect’s role, not the fault of the defendant.
* Remoteness may be governed by the direct consequences test (Re Polemis) rather than the Wagon Mound test in negligence.

Case Example:
* In Evans v Triplex Safety Glass Co Ltd (1936), causation failed in negligence after a windscreen shattered 12 months later. Under the CPA 1987, causation would still need proof but focuses on the defect rather than breach.

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16
Q

What is a ‘defect’ under the CPA 1987, and what factors are considered?

A

A product is defective if it is unsafe—its safety is not such as persons generally are entitled to expect.

Factors considered:
1. Presentation of the product (packaging, instructions, warnings).
2. Expected use of the product.
3. Age of the product.

Case Example:
In A v National Blood Authority (2001):
* Contaminated blood was defective because consumers expected it to be virus-free, even though the risk was unavoidable at the time.

17
Q

How does the CPA 1987 define a ‘product’, and what is included?

A

The CPA defines a product as:
1. Any goods or electricity.
2. Component parts and raw materials (e.g., car engines, chemicals).
3. Products incorporated into other items.
4. Examples:
* Blood in transfusions (A v National Blood Authority).
* Faulty landing gear causing an aircraft crash.

18
Q

Who can be held liable under the CPA 1987?

A
  1. Producers (manufacturers): Includes manufacturers of components or final products.
  • Example: Faulty landing gear in an aircraft crash—both the component and aircraft manufacturers may be liable.
  1. Own-branders: Those labeling products as their own.
    * Example: Tesco labeling third-party goods as Tesco-brand products.
  2. Importers: Those importing products from outside the UK to supply to others.
  3. Suppliers (limited cases): Liable if unable to identify others in the supply chain (e.g., wholesalers or manufacturers).
19
Q

What defences are available under the CPA 1987?

A
  1. Compliance with legal requirements: Defect arose from following mandatory laws.
    • Example: A product manufactured to outdated but legally compliant safety standards.
      2. Non-supply of the product:
    • Example: A stolen defective toy injures a child; the manufacturer is not liable.
      3. Non-business supply: Products supplied privately.
    • Example: A friend selling a defective product.
      4. Defect arose after supply: Misuse, wear and tear, or subsequent alteration caused the defect.
      5. Defect due to design or instructions of another manufacturer:
    • Example: Faulty engine resulting from car manufacturer’s design instructions.
      6. Development risks (state of the art):
    • The defect was undiscoverable using the best global knowledge at the time.
    • Case Example: In A v National Blood Authority, this defense failed because the risk was known.
      7. Contributory negligence: Claimant’s carelessness contributed to the damage.
    • Example: Bethan leaving a defective electric blanket on unattended reduces her damages.
20
Q

How does the development risks defense work, and what are its limitations?

A

Criteria:
* The defect must have been undiscoverable using the highest global standard of knowledge at the time.
* It applies only to unforeseeable risks.

Case Example:
* In A v National Blood Authority (2001), the defense failed because the risk of viral infection in blood was known, even though unavoidable.

Limitation:
Producers must show that no accessible knowledge or testing worldwide could have revealed the defect.

21
Q

How does the CPA 1987 compare to negligence for product liability claims?

A

CPA 1987:
* Strict liability—claimants need only prove damage, defect, and causation.

  • Excludes claims for business property damage.

Negligence:
* Requires proof of breach of duty.
* Covers broader property damage, including business property.

Example:
Clive can claim for his business-use computer under negligence but not under the CPA 1987.

22
Q

What are the limitations on recoverable losses under the CPA 1987?

A
  1. Damage to the defective product itself (pure economic loss) is excluded.
  2. Damage to business property is excluded.
  3. Private property damage must exceed £275.

Case Example:
Clive’s defective television (pure economic loss) and business-use computer are not recoverable, but his antique clock (private property) is.

23
Q

Can liability be excluded under the CPA 1987?

A

No, the CPA 1987 prohibits defendants from excluding, limiting, or restricting liability for defective products.

24
Q

What is strict liability under the CPA 1987, and why is it advantageous for claimants?

A

Strict Liability: The claimant does not need to prove fault or negligence, only that:
1. Damage occurred.
2. Caused by a defect.
3. In a product.

Case Example:
In A v National Blood Authority (2001), the defendant was liable for virus-contaminated blood despite the defect being unavoidable.

Advantage:
Unlike negligence, where proving breach of duty is required, strict liability simplifies the claimant’s case.

25
Q

What steps must be followed to establish product liability in negligence?

A
  1. Duty of Care:
    • Is the defendant a ‘manufacturer’ (includes repairers, installers, and suppliers)?
    • Is the item causing damage a product?
    • Is the claimant a ‘consumer’?
    • Was there no reasonable possibility of intermediate examination before reaching the consumer?
    • If NO → No liability in negligence.
      2. Breach of Duty:
    • Did the defendant meet the standard of a reasonable manufacturer?
    • Consider factors: magnitude of risk, warnings.
    • Can the claimant provide facts for the court to infer a breach?
    • If NO → No liability in negligence.
      3. Causation:
    • Did the breach cause consequential damage (not the product itself) to the claimant?
    • If NO → No liability in negligence.
      4. Defences:
    • If breach and damage are established, consider possible defences.

Outcome: If all steps are satisfied → Liability in negligence.

26
Q

What steps must be followed to establish liability under the Consumer Protection Act 1987 (CPA)?

A
  1. Damage:
    • Has the claimant suffered recoverable damage?
    • Personal injury or
    • Damage to private property exceeding £275 (not business property or the product itself).
    • If NO → Consider a claim in negligence.
      2. Defect:
    • Was the product defective (i.e., not as safe as persons are generally entitled to expect)?
    • If NO → No claim under the CPA.
      3. Causation:
    • Did the defect cause the claimant’s damage?
    • If NO → No liability under the CPA.
      4. Potential Defendants:
    • Identify liable parties:
    • Producer (manufacturer)?
    • Own-brander?
    • Importer into the UK?
    • Forgetful supplier?
    • If NO defendants → No liability under the CPA.

Outcome: If all steps are satisfied → Strict liability applies, subject to any available defenses under the CPA.