Pure Economic Loss and Product Liability

Question 1

What is pure economic loss?

Answer 1

Financial loss not linked to physical harm or property damage.

Question 2

What is negligent misstatement?

Answer 2

A careless false statement made by a professional causing pure economic loss. Must prove that there is a special relationship between the claimant and adviser.

Question 3

What conditions must be proven to bring a claim for pure economic loss due to negligent misstatement, relying on Hedley Byrne?

Answer 3

To establish pure economic loss from negligent misstatement under Hedley Byrne, the claimant must show a special relationship with the defendant, the defendant voluntarily assumed the risk of the statement’s reliability, the claimant relied on the statement, and that reliance was reasonable.

Question 4

What are the key elements a claimant needs to prove to succeed in a product liability claim under common law?

Answer 4

To succeed in a product liability claim under common law, you need to prove duty, breach, causation, and damage.

Question 5

What are the key elements a claimant needs to prove to succeed in a product liability claim under the Consumer Protection Act?

Answer 5

To succeed in a product liability claim under the Consumer Protection Act, you need to prove damage was caused by a defect in the product.

o It has a wider scope than common law.
o What is a defect?
o What are goods?
o Limitation periods.

Question 6

Product liability routes to claim

Answer 6

Negligence - show that the manufacturer breached their duty of care through a mistake
Or Consumer Protection Act - introduces strict liability. If the product is defective it doesn’t matter if the D took care, they are strictly liable. Designed to protect consumers.

Question 7

Donoghue v Stevenson

Answer 7

Duty of care for manufacturers to consumers even if there is no contract. Protecting the end consumer

Question 8

Product Liability is a

Answer 8

Strict liability offence - manufacturer is responsible no matter what

Question 9

With pure economic loss, only losses arising from X are recoverable

Answer 9

Property damage - not staff wages etc

Question 10

There is generally no recovery for

Answer 10

Pure economic loss except for when there is a negligent act and misstatement