Tort - Product Liability

What claims should someone consider when they have a problem with a defective product?

Negligence

Breach of Contract

Consumer Protection Act

What kind of liability does The Act introduce?

Strict liability - no fault needs to be proven

What is the general provision for liability in the Consumer Protection Act?

Where any damage is caused wholly or partly by a defect in a product, certain people will be liable for the damage

What is included as a 'product' under the consumer protection act?

Any goods or electricity, includes products comprised in another product (a component part or raw material)

e.g. computer chip is a product even once it becomes part of a computer

What is a 'defect' under the consumer protection act?

If the safety of the product is not up to the standard people are generally entitled to expect

What factors are considered when assessing the safety standard people are entitled to expect of a product?

Manner/purpose for which it has been marketed

The way the product is described on packaging

Any warnings accompanying the product

What might reasonably be expected to be done with/in relation to the product

Time product was supplied by its producer (use may change over time)

Is there a difference between Consumer Protection Act and the standard of care in negligence?

Both expect manufacturer to take reasonable care but MORE reasonable care is expected of them under the Act

What is damage under the consumer protection act?

Death

Personal Injury

Loss or damages to any property (including land)

Consequential Economic Loss

What is NOT damage under the consumer protection act?

Pure economic loss

Loss of the product itself

What are the limits on the type of damage for which a claim can be brought under the consumer protection act?

- Claim for the property must be for damages greater than £275 (excluding interest)

- Property must be ordinarily used & intended by the person suffering the loss/damage for private use/occupation/consumption

- losses suffered by businesses are unlikely to be recoverable

Can a party bring a claim for negligence and under the consumer protection act?

Yes

Who can be liable for the damage of the defective product??

The producer of the product

Anyone who has held themself out to be the producer of the product (by putting their name on it, trademarking etc)

Anyone who has imported the product into the UK from outside the UK to supply it to another person

Who is a 'producer' under the consumer protection act?

Manufactured products = the manufacturer

Products won/abstracted = the person who won/abstracted it

The person who carried out the process to which the characteristics are attributable

When can the person who supplied the defective product to any person be liable for the damage caused?

If the person suffering damage asks for details of the producer/importer within a reasonable time, and when they cannot identify the producer/importer themselves & the supplier fails to identify that person

Give an example of who is a supplier?

A retailer who sells products they did not produce

How can a supplier of defective goods NOT be liable?

If they can tell the person suffering damage who produced/imported the goods so they can pursue THEM instead.

Can multiple people be liable under the consumer protection act? How are they liable?

Yes - jointly & severally

Who can bring a claim under the consumer protection act?

Anyone suffering damage as a result of the defect

Generally not businesses

Which defences are available under the consumer protection act?

The defect did not exist in the product at the relevant time

The state of scientific & technical knowledge at the relevant time meant that the producer would be unable to discover the defect themselves

Contributory negligence

If a manufacturer is aware of a defect but the state of science/tec knowledge is such that the defect cannot be fixed, do they have a defence?

will only be liable if they had the ability to fix it

Can producers exclude/limit liability under the provisions of this act?

NO

What are the limitations on claims under the consumer protection act?

Claim must be brought within 3 years from the LATER of:

- The date the injury/damage occurred

- When C became aware/reasonably should have become aware of the damage

What is the long stop for product liability?

No actions can be brought under the act 10 years after the product was put into circulation.

After this, C only can claim in negligence

Does the harm need to be foreseeable for product liability under the act?

No

What is the causation required for a claim of product liability under the act?

The damage was caused wholly or partly by the defect

What is the overall duty of care owed in regards to products?

A manufacturer owes a duty of care to the people who use its products

What is the starting point for a claim in negligence for product liability?

Is there a precedent establishing whether a duty is owed?

Who does a manufacturer owe a duty to in defective products?

The final purchaser at the end of the supply chain

AND

Other users of the product/ parties who come into contact with it

Is it only the manufacturer who can be held liable for negligence in defective products?

Repairers

Suppliers

Distributors (who should have reasonably inspected a product)

Is pure economic loss generally recoverable for defective product neglgience?

No

What is generally sufficient to prove breach in a defective product negligence claim?

The presence of a defect, unless manufacturer can show another reason for the defect

Who must prove the breach?

The claimant must prove the manufacturer fell below required standard of care - presence of a defect doesn't necessarily show this

How must causation be shown in negligence for defective products?

If manufacturer has no reason to contemplate an intermediate inspection will occur, they will be liable

If an immediate inspection will occur, liability may be on the inspector

If there is a warning to test the product & C fails to carry this out, this may break the chain of causation