Product Liability

Introduction

This chapter deals with **liability for damage caused by defective products**. A cause of action for a defective product may lie in one of three areas of law, but for SQE1 we focus on the two that matter most: the **tort of negligence** (the narrow rule in **Donoghue v Stevenson [1932]**) and the **Consumer Protection Act 1987 ('CPA 1987')**. You must be able to identify, on a client scenario, **who can sue**, **who can be sued**, **what counts as a defect**, **what damage is recoverable**, and **which defences apply** under each regime.

Assessment focus

For SQE1, product liability is examined as part of the wider tort of negligence syllabus. Questions are single best answer questions (SBAQs) set in **realistic client-based scenarios** in which you must decide whether a claimant can recover for harm caused by a defective product, and on what legal basis. You should be able to: apply the **four requirements of the narrow rule** in Donoghue v Stevenson (manufacturer / product / consumer / no intermediate inspection); identify the **four categories of defendant** under the CPA 1987 (producer, own-brander, importer, supplier in limited circumstances); explain that the CPA 1987 imposes **strict liability** and **runs alongside** the common law rather than replacing them; and recall the **restrictions on recoverable damage** (no claim for the product itself; the **£275 lower limit**; private-use property only). This is a closed-book assessment — commit the case names, the four-part tests and the key section numbers to memory.

Study tips

1) Memorise the **four limbs of the narrow rule** in Donoghue v Stevenson: **manufacturer · product · consumer · no reasonable possibility of intermediate inspection**. 2) Remember the **CPA 1987 is strict liability** — the claimant need NOT be a **foreseeable** victim and need NOT prove fault. 3) Learn the **four categories of defendant** under the CPA 1987: **producer, own-brander, importer, supplier (limited circumstances only)**. An installer / independent contractor is usually NONE of these — so the CPA claim fails but negligence may succeed. 4) Note the damage limits: **no recovery for the defective product itself** (pure economic loss, s. 5(2)); property must be for **private use** (s. 5(3)); a **£275 lower financial limit**. 5) **Defences** under the CPA 1987 include the **development-risks (state of knowledge) defence**; remember there is **NO contributory-negligence bar** to the strict liability regime and **exemption clauses are prohibited**; the limitation period is **three years**.