Distributor and third party relationships

Published by a LexisNexis Commercial expert
Practice notes

Distributor and third party relationships

Published by a LexisNexis Commercial expert

Practice notes
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This Practice Note describes the extent of a distributor's liabilities towards third parties, including where it may incur primary product liability in place of the manufacturer for the goods it distributes.

Distributor and customer

A distributor buys products from a manufacturer and resells them on its own behalf. The contract and the relationship is between the end-user and the distributor, rather than the manufacturer, and it is the distributor to whom the customer will look for product maintenance or redress for defective products.

Product liability

Notwithstanding the distributor's contractual liability to customers for defective products, UK law holds manufacturers and others involved in the distribution chain strictly liable for damage or injury to third parties caused by product defects under Part I, ss 1–9 of the Consumer Protection Act 1987 (CPA 1987). For this reason, manufacturers will want to restrict distributors from admitting liability in respect of defective products without the manufacturer's prior approval.

Distributors may be liable under CPA 1987, s 2 where:

  1. they are the original importer of the product into the UK from outside

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Jurisdiction(s):
United Kingdom
Key definition:
Distributor definition
What does Distributor mean?

A distributor is an independent contractor who buys goods on their own account from an exporter or supplier and resells the goods to customers in their own territory.

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