Insurance Law - Product Liability
Date: May 10, 2010
Authors: Pheba Netto LL.B. (Hons)
Generally product liability in law refers to the responsibility or the liability of manufacturers, distributors, suppliers, retailers, and others who produce and supply goods/products to the public which result in damages or injury caused by the use of a defective product. Product liability law is relied on to seek compensation for the damages which result from the use of a defective product, the use of an unreasonable dangerous product and from the failure of a manufacturer or seller to warn the consumer of product dangers. The main area of law applicable to claims for product liability would be the law of Tort and Personal Injury.
Manufacturers and suppliers have a duty to ensure that goods and products supplied meet an acceptable standards or level of safety. There are also mandatory standards and bans that will have to be met. The Office of Fair Trading in NSW provides assistance to manufacturers in maintaining product safety and standards.
Almost anyone injured by the use of the product can bring an action for damages as a result of the use of the defective product. It would have to be shown that the user would not have suffered any damages or injury had the product not been used. The Civil Liability Act imposes tests on the commencement or damages on product liability damage claims as well as costs.
The Commonwealth Trade Practices Act 1974 (TPA) governs provisions on product safety. Part VA of the TPA imposes a liability for defective goods that cause personally injury or property damages as a result of the use of those goods. The most common claims under Part V are misleading and deceptive conduct, false and misleading representations and contravention product safety standards. Failure to comply with legal requirements of product safety can result in heavy penalties. The Australian Competition Consumer and Commission (ACCC) is responsible for the enforcement of the TPA relating to consumer product safety.
The consequence of breach of product safety provisions are injunctions, damages and monetary penalties or fines.
Defences to a claim for Damages caused by defective product
The most important defences available to claim for damages for product liability are the absence of the defect at the time of supply, i.e referring to the quality control requirements of the goods particularly that the defect did not exist at the time the goods left the manufacturer. This can amount to a compete defence to the manufacturer.
On the other hand where a manufacturer establishes a defence of reliance on a federal mandatory standard, the federal government may be liable to the injured plaintiff.
Penalties
When there is a mandatory standard applicable on the supply, manufacture or production of goods and these standards are not complied with, the Trade Practices Act imposes penalties or fines for the non-compliance.
Fines for non-compliance are:
- up to $1.1 million for companies
- up to $220 000 for individuals.
These can have serious consequences and the law protects those who have suffered damages as a result of defective goods. It is extremely important to ensure that product liability is taken seriously to avoid any unnecessary consequences and loss to all parties concerned.
At LAC Lawyers we are able to provide you with sound advise to enable you to minimise you loss and we are also able to advise you of the most appropriate options available to you.
Contact us now for Fast, Accurate and Timely legal advice
Phone LAC Lawyers on NSW 1300 799 888 or VIC 1300 734 638 or send us an email
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Author(s): Pheba Netto LL.B. (Hons)
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Author(s): LAC Lawyers
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Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
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Author(s): Michael Pickering B.A., LL.B. (Hons.), LL.M., M. A.
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Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
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Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
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Author(s): LAC Lawyers
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Author(s): LAC Lawyers
LAC Lawyers is a full service firm dedicated to the provision of superior legal services in Australia. Our aim is to provide unrivalled client satisfaction coupled with high quality service and advice. When you call LAC Lawyers our friendly reception staff will spend time with you to identify the area of law your enquiry relates to then pass you on to one of our qualified solicitor's who can help you.
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Author(s): LAC Lawyers
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