Product Liability (B)

Question 1

Donoghue v Stevenson: product liability.

Answer 1

Manufacturer owes a DoC when the product is manufactured for the ultimate consumer, regardless of an subsequent intermediary.

Question 2

What were the issues with product liability in common law?

Answer 2

• If negligence could not be proven on the part of the manufacturer, only remedy was in contract against the retailer.
• If negligence could not be proven on the part of the manufacturer, and you did not purchase the item from the retailer, you were left without a remedy.
• Tracking down retailer / manufacturer could be difficult.
• May involve complex products with many component parts.

Question 3

The Consumer Protection Act 1987.

Answer 3

• A defect is enough to sue under the Act.
• STRICT LIABILITY REGIME.
• Not trying to prove fault, do not need to prove negligence.

Question 4

What is a product defined as under the CPA87?

Answer 4

s1(2)(c): “product means any goods or electricity”.

Question 5

Who is liable for the defect in the product?

Answer 5

s2(1)&(2): “the (i) producer of a raw material, (ii) the manufacturer of a finished product or (iii) of a component part.”
- The importer of the product.
- Any person putting their name, trademark or other distinguishing feature on the product.
- End supplier, if their manufacturer cannot be identified.

Question 6

What if you can’t identify the producer or importer?

Answer 6

s2(3): you can hold the supplier responsible, if:
- The person who suffered the damage requests the supplier to identify one or more of the I, P, B.
- That the request is made within a reasonable period after the damage occurs and at a time when it is not reasonably practicable for the persons making the request to identify all the persons; and
- The supplier fails, within a reasonable period after receiving the request, either to comply with the request or to identify the person who supplied the product.

Question 7

What is a defect?

Answer 7

s3(1): “there is a defect in a product… if the safety of the product is not such as persons are ENTITLED to expect.”
(2): All circumstances shall be taken into account, including -
(a) the MANNER in which, and PURPOSES for which, the product has been marketed.
(b) INSTRUCTIONS or WARNINGS.
(c) TIME when product was supplied.
(d) WHAT MIGHT REASONABLY BE EXPECTED TO BE DONE in relation to the product.

Question 8

What are the possible defences for defective products?

Answer 8

s4:
- Compliance with a legal requirement.
- Uncirculated products.
- Subsequent defects.
- Non-profit activities.
- Components.
- Development risk.

Question 9

What are the limitations to the CPA87?

Answer 9

• Damage to the product itself is not covered (s5(2)).
• Business property is not covered (s5(3)).
• Damages of no more than £275 (s5(4)).