TABLE OF CONTENTS Product liability is the liability of a supplier, designer or manufacturer to the customer for injury or loss resulting from a defect in that product. There are reasons why it has recently become the focus of attention. The first is the publication in July 1985 of a directive by the European Community, and the second is the wave of actions under United States law which has resulted in spectacular awards for claims involving death or injury. By 1984, sums awarded resulting from court proceedings often reached $1 million. Changes in the United Kingdom became inevitable and the Consumer Protection Act reinforces the application of strict liability. It is necessary, therefore, to review the legal position.
This is largely governed by the Sale of Goods Act 1979, which requires that goods are of merchantable quality and are reasonably fit for the purpose intended. Privity of Contract exists between the buyer and seller which means that only the buyer has any remedy for injury or loss and then only against the seller, although the cascade effect of each party suing, in turn, the other would offset this. However, exclusion clauses are void for consumer contracts. This means that a condition excluding the seller from liability would be void in law. Note that a contract does not have to be in writing and that a sale, in this context, implies the existence of a contract.
The relevant area is that relating to the...
