Product liability risk management for producers
Produced in partnership with Simon Castley of Shook, Hardy & Bacon International LLP
Product liability risk management for producers

The following Commercial practice note produced in partnership with Simon Castley of Shook, Hardy & Bacon International LLP provides comprehensive and up to date legal information covering:

  • Product liability risk management for producers
  • Risks
  • Pre-contractual measures
  • Contractual protection
  • Fitness for purpose
  • Supply contracts
  • Exemption clauses
  • Insurance
  • Risk management
  • Instructions and warnings
  • More...

Product liability risk management for producers

This Practice Note explains the risks faced by producers in respect of their liability to members of the public for dangerous or sub-standard products, and the steps which producers can take to manage that risk.

Risks

Any business trading in consumer goods (or goods that may fall into the hands of a consumer) needs to be aware of the requirements of existing legislation and common law remedies and the risks that it faces if the product fails to function properly or presents a danger to users or other members of the public.

End-users who purchase dangerous or sub-standard goods may be able to claim:

  1. for breach of contract against the seller, or

  2. directly against a manufacturer under a product guarantee, or

  3. where there has been some personal injury or damage to other property besides the product supplied:

    1. in negligence, or

    2. under the Consumer Protection Act 1987 (CPA 1987)

Importers of products and others in the supply chain may face direct financial claims as well as claims for breach of contract from customers. In turn, they may want to recover any losses from those higher up the chain, including component or raw material suppliers.

Consumers have a wide range of rights under the Consumer Rights Act and a claim for breach of the express or implied terms of a contract is often more likely than

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