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Ryder N., Griffiths M., Singh L. Commercial law - principles and policy 2012.pdf
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3â Meaning of ‘product’

 

 

 

 

ownÂ

-brander, the injured user will opt, in all probability, to sue the own-brander

 

as being the wealthier defendant who is better placed to pay compensation.

 

Section 2(6) confirms that identifying potential defendants and placing joint

 

and several liability upon them under section 2 does not prejudice any other

 

liability that might arise from the injury. Thus, for example, if the injured user

 

is also the person who bought the goods from a retailer, his contract action will

 

subsist against the retailer even though the latter will escape liability under

 

product liability if he has identified the person from whom he acquired the rele-

 

vant goods or the producer, own-brander or first importer into the European

 

Union. Equally, actions in negligence will still exist alongside liability under

 

product liability. Hence, a producer who is negligent in the way he produces

 

goods will be liable in negligence in addition to being strictly liable under the

 

1987 Act. This may be invaluable if, for example, some of the damage cannot be

 

recovered under product liability. Thus, for example, if the injured user has suf-

 

fered personal injury and damage to business property, he will be able to claim

 

compensation for the personal injury through strict liability and for the damage

 

to business property through negligence. Naturally, the potential multiplicity of

 

legal causes of action cannot be used to gain double compensation.

 

Against this background of several alternative defendants, the European

 

Commission concluded in its report that there is no justification for introdu-

 

cing a ‘market share liability’ concept similar to that used in the United States

 

in situations such as occurred in the ‘DES daughters’ litigation. Indeed, the

 

Commission acknowledged that the use of this policy is limited.30

 

Q2 Does the inclusion of first importers, own-branders and suppliers as potential

 

defendants in a product liability action provide a balanced approach to the pro-

 

tection of consumers? Is it reasonable to allow suppliers of the product to negate

 

their own liability by identifying their supplier?

3â Meaning of ‘product’

The definition of a ‘product’ is clearly of central importance to liability under the 1987 Act. It is defined in section 1(1) as being ‘any goods or electricity and includes a product which is comprised in another product, whether by virtue of being a component part or raw material or otherwise’. A rider to this general statement is included in section 1(3), which provides that a person who supplies a product in which other products are comprised, either as component parts or raw materials, will not be deemed to be a supplier of those component parts or raw materials purely by virtue of his supply of the main product.

This definition differs from that contained originally in the Directive, which defined a product as meaning ‘all movables, with the exception of primary agricultural products and game, even though incorporated into another movable

30 Ibid. para. 3.2.1.

306

 

Product Liability under the Consumer Protection Act 1987

 

 

 

 

 

or into an immovable’. The exception for primary agricultural products was

 

 

removed from the Directive in 1999 as a direct response to the ‘mad cow dis-

 

 

ease’ (BSE) crisis in the farming industry.31 Therefore, agricultural products are

 

now included in the definition of a product and liability will ensue in respect of

 

damage caused by defective products. In practice, though, it may be very difficult

 

for a claimant to prove the causal link between his injury and the agricultural

 

product concerned. Someone contracting an illness from drinking unpasteur-

 

ised milk may find it relatively easy to establish the identity of the farmer who

 

supplied that product. However, by contrast, it would be extraordinarily difficult

 

for a claimant who has contracted variant Creutzfeldt-Jakob Disease (vCJD)32 to

 

 

prove the link between himself and an individual BSE-infected animal.33

 

 

 

The Directive definition also expressly states that ‘products’ are ‘movables’,

 

 

a definition which clearly excludes immovables. Thus, land and buildings

 

 

are not included, a situation that remains unaltered following the European

 

 

Commission’s Report, which recommended that real property should not be

 

 

included within the meaning of product.34 However, it is clear that movables

 

 

that have been incorporated into an immovable item will be classed as products.

 

 

Thus, liability would arise in respect of windows, central heating systems and

 

 

electrical circuits if they were to prove defective and cause an injury. Electricity

 

 

itself is expressly included as a product.35

 

 

 

There is no express statement that either includes or excludes blood and other

 

 

human products. However, in A v. National Blood Authority,36 a case concern-

 

 

ing a claim by 114 people who contracted Hepatitis C as a result of being given

 

 

infected blood during blood transfusions, it was expressly accepted that blood

 

 

is a product for the purposes of product liability.37 It is then a small step to argue

 

 

that other human organs and tissues must likewise be classed as products for

 

 

this purpose, with liability ensuing if the ‘products’ have not been stored or pre-

 

 

pared properly for a medical procedure.38 The French government introduced

 

31

By Directive 1999/34/EC [1999] OJ L141/20.

 

32

vCJD is sometimes referred to as a human form of BSE.

 

33

In a statement, the Spongiform Encephalopathy Advisory Committee (SEAC) reported that

 

 

 

they ‘have considered 10 cases of CJD which have occurred in people aged under 42 which

 

 

 

have recently been identified by the CJD Surveillance Unit, Edinburgh. The Committee have

 

 

 

concluded that the Unit has identified a previously unrecognised and consistent disease pattern.

 

 

 

A review of patients’ medical histories, genetic analysis to date and consideration of other possible

 

 

 

causes, such as increased ascertainment, have failed to explain these cases adequately. Although

 

 

 

there is no direct evidence of a link, on current data and in the absence of any credible alternative

 

 

 

the most likely explanation at present is that these cases are linked to exposure to BSE before the

 

 

 

introduction of the SBO ban in 1989’.

 

34

European Commission, Report on Directive 85/374, above n. 29, para. 3.2.8.

 

35

Product Liability Directive, Art. 2; Consumer Protection Act 1987, s.1(2).

 

36

[2001] 3 All ER 289.

 

37

A v. National Blood Authority is also a key decision in analysing the meaning and assessment of

 

 

 

when a product is defective for the purposes of the 1987 Act.

 

38

See Henning Veedfald v. Århus Amtskommune C-203/99 [2001] ECR I-3569, as discussed in

 

 

 

Howells and Weatherill, above n. 19, ch. 4, note 82.