Product Liability: Negligence and the Consumer Protection Act 1987

Flashcards covering the core principles of Product Liability in Tort, including Negligence rules and the Consumer Protection Act 1987.

Donoghue v Stevenson [1932] 'wide rule'

The well-known 'neighbour principle' formulated by Lord Atkin used to determine a duty of care in 'novel' situations.

Donoghue v Stevenson [1932] 'narrow rule'

The principle establishing that a manufacturer owes a duty of care to the consumer when a product reaches the consumer in the form it left the manufacturer with no reasonable possibility of intermediate examination.

Manufacturer (Negligence)

A widely interpreted category including anyone who works on a product before it reaches the consumer, such as repairers, installers, and in some cases, suppliers.

Product (Negligence)

Covers almost any item capable of causing damage, including the packaging, containers, labels, and instructions supplied with the item.

Consumer (Negligence)

Includes the ultimate user of a product and anyone the defendant should reasonably have in mind as likely to be injured by the negligence.

Intermediate Examination

A reasonable possibility of inspecting a product before use; if a manufacturer believes such an examination is likely to take place, they may not owe a duty under the narrow rule.

Pure Economic Loss (Negligence)

Losses stemming purely from the defective quality of the item itself, such as the reduction in value, repair costs, or replacement costs, which are not recoverable in negligence.

Res ipsa loquitur (Product Liability)

A legal maxim meaning 'the thing speaks for itself'; Lord Macmillan in Donoghue v Stevenson stated it should not be relied on in product liability, though courts may still 'infer' breach from proven facts.

Wagon Mound test

The standard 'remoteness' test in negligence used to determine if the claimant's loss is of a reasonably foreseeable type.

Consumer Protection Act 1987 (CPA 1987)

A statute creating a statutory tort of strict liability for damage caused by defective products, providing an additional cause of action to negligence.

Damage (CPA 1987 definition)

Includes death and personal injury (unlimited) and damage to private property exceeding $275$ pounds, excluding business property and the cost of the defective product itself.

Defect (CPA 1987 definition)

A state where the safety of a product is not such as persons generally are entitled to expect, taking into account presentation, expected use, and age.

Product (CPA 1987 definition)

Any goods or electricity, including components or raw materials comprised in another product.

Producer

The manufacturer of a product or its component parts.

Own-brander

A person who, by putting their name or trademark on a product, holds themselves out as being its producer.

Importer (CPA 1987)

A person who imports a product into the UK from outside the UK in order to supply it to another.

Forgetful supplier

A supplier who is liable under the CPA 1987 only if they fail to identify a person in the supply chain (e.g., manufacturer) when requested by the victim.

Strict Liability

A form of liability where the defendant is responsible for damage without the claimant needing to prove fault or carelessness.

Development risks defence

A defence under the CPA 1987 where the state of knowledge at the time of supply was not such that a producer could have discovered the defect.

Section 11.3.8.1 CPA Defence

Compliance with a legal requirement absolves a producer from liability only if the defect was an inevitable result of that compliance.