- •Commercial Law
- •Contents
- •Preface
- •Abbreviations
- •Table of Statutory Provisions
- •Table of Cases
- •1 Introduction
- •1 Introduction
- •2 What is agency?
- •3 Nature and characteristics of agency
- •4 The different types of agency
- •5 Conclusion
- •6 Recommended reading
- •1 Introduction
- •2 The authority of an agent
- •3 Agency by ratification
- •4 Agency of necessity
- •5 Conclusion
- •6 Recommended reading
- •1 Introduction
- •2 Duties of an agent
- •3 Rights of an agent
- •4 Commercial agents and principals
- •5 Disclosed agency
- •6 Undisclosed agency
- •7 Termination of agency
- •8 Recommended reading
- •Introduction
- •1 Introduction
- •2 Background
- •3 Development of the sale of goods
- •4 Equality of bargaining power: non-consumers and consumers
- •5 Impact of the European Union
- •6 Contract of sale
- •7 Contracts for non-monetary consideration
- •8 Contracts for the transfer of property or possession
- •9 Recommended reading
- •1 Introduction
- •2 Background
- •3 Sale of Goods Act 1979, section 12: the right to sell
- •4 Sale of Goods Act 1979, section 13: compliance with description
- •5 Sale of Goods Act 1979, section 14(2): satisfactory quality
- •6 Sale of Goods Act 1979, section 14(3): fitness for purpose
- •7 Sale of Goods Act 1979, section 15: sale by sample
- •8 Exclusion and limitation of liability
- •9 Acceptance
- •10 Remedies
- •11 Recommended reading
- •1 Introduction
- •2 Background to the passage of property and risk
- •3 Rules governing the passage of property
- •4 Passage of risk
- •5 The nemo dat exceptions
- •6 Delivery and payment
- •7 Remedies
- •8 Recommended reading
- •1 Introduction
- •2 Background
- •3 Provision of Services Regulations 2009
- •4 Supply of Goods and Services Act 1982
- •5 Recommended reading
- •1 Introduction
- •2 Background
- •3 Electronic Commerce (EC Directive) Regulations 2002
- •4 Distance selling
- •5 Recommended reading
- •Introduction
- •1 Introduction
- •2 CIF contracts
- •3 FOB contracts
- •4 Ex Works
- •5 FAS contracts
- •6 Conclusion
- •7 Recommended reading
- •1 Introduction and background
- •2 Structure and scope
- •3 UNIDROIT Principles of International Commercial Contracts
- •4 Conclusion
- •5 Recommended reading
- •1 Introduction and background
- •2 Open account
- •3 Bills of exchange
- •4 Documentary collections
- •5 Introduction to letters of credit
- •6 Factoring
- •7 Forfaiting
- •8 Conclusion
- •9 Recommended reading
- •1 Introduction
- •2 Hague and Hague-Visby Rules
- •3 Charterparties
- •4 Time charterparty
- •5 Common law obligations of the shipper
- •6 Common law obligations of the carrier
- •7 Bills of lading
- •8 Electronic bills of lading
- •9 Conclusion
- •10 Recommended reading
- •Introduction
- •1 Introduction
- •2 Background
- •3 Development of negligence
- •4 The move to strict liability
- •5 Types of defect
- •6 Developments in strict liability
- •7 Recommended reading
- •1 Introduction
- •2 Personnel
- •3 Meaning of ‘product’
- •4 Defectiveness
- •5 Defences
- •6 Contributory negligence
- •7 Recoverable damage
- •8 Limitations on liability
- •9 Recommended reading
- •Introduction
- •1 Introduction
- •2 Background
- •3 Enforcement strategy
- •4 Criminal law controls
- •5 Civil law enforcement
- •6 Recommended reading
- •1 Introduction
- •2 Scope of the 2008 Regulations
- •3 Prohibition against unfair commercial practices
- •4 Codes of practice
- •5 Misleading actions
- •6 Misleading omissions
- •7 Aggressive commercial practices
- •8 Commercial practices which are automatically unfair
- •9 Offences
- •10 Recommended reading
- •1 Introduction
- •2 Background
- •3 Controls over misleading advertising
- •4 Comparative advertising
- •5 Promotion of misleading or comparative advertising
- •6 Recommended reading
- •1 Introduction
- •1 Introduction
- •2 History of banking regulation: early policy initiatives
- •3 New Labour and a new policy
- •4 The Financial Services Authority
- •5 The Coalition government
- •6 Conclusion
- •7 Recommended reading
- •1 Introduction
- •2 What is a bank?
- •3 What is a customer?
- •4 Bank accounts
- •5 Cheques
- •6 Payment cards
- •7 Banker’s duty of confidentiality
- •8 Banking Conduct Regime
- •9 Payment Services Regulations 2009
- •10 Conclusion
- •11 Recommended reading
- •1 Introduction
- •2 European banking regulation
- •3 The Financial Services Authority
- •4 Financial Services Compensation Scheme
- •5 Financial Ombudsman Scheme
- •6 Financial Services and Markets Tribunal
- •7 The Bank of England
- •8 Bank insolvency
- •9 Illicit finance
- •10 Conclusion
- •11 Recommended reading
- •1 Introduction
- •1 Introduction
- •2 Evolution of the consumer credit market
- •3 Consumer debt, financial exclusion and over-indebtedness
- •4 Irresponsible lending
- •5 Regulation of irresponsible lending
- •6 Irresponsible borrowing
- •7 Ineffective legislative protection for consumers
- •8 A change of policy
- •9 Lessons from the United States
- •10 Conclusion
- •11 Recommended reading
- •1 Introduction
- •2 Crowther Committee on Consumer Credit
- •3 Consumer Credit Act 1974
- •4 Formalities
- •5 Cancellation of agreements
- •7 Documentation of credit and hire agreements
- •8 Matters arising during the currency of credit or hire agreements
- •9 Credit advertising
- •10 Credit licensing
- •11 Unfairness test
- •12 Other powers of the court
- •13 Financial Ombudsman Service
- •14 Enforcement
- •15 Consumer Credit Directive
- •16 Conclusion
- •17 Recommended reading
- •Bibliography
- •Index
Part 4 Chapter 1
Negligence and the Rise of
Product Liability
Contents
1â |
Introduction |
273 |
2â |
Background |
274 |
3â |
Development of negligence |
275 |
4â The move to strict liability |
280 |
|
5â |
Types of defect |
281 |
6â Developments in strict liability |
284 |
|
7â |
Recommeded reading |
296 |
1â Introduction
This chapter looks at the development of tort law and its application to prod- uct-related injuries. Thus, it considers both the tort of negligence and the policy lying behind the development of strict liability.
The chapter is structured as follows. Section 2 considers the background to the development of the law of negligence and strict liability and the relationship between the two legal regimes.
Section 3 considers the development of the law of negligence and introduces the essential elements of the tort, namely, (i) the duty of care as enunciated in Donoghue v. Stevenson,1 which laid down that the manufacturer of a product owes a duty of care in respect of that product; (ii) the persons to whom the duty is owed as identified through the ‘neighbour principle’ as laid down by Lord Atkin in Donoghue v. Stevenson; (iii) the standard of care owed by the manufacturer; (iv) the impact of any intermediate inspection; (v) the need to establish a breach of the duty of care; and (vi) the impact of contributory negligence on liability.
Section 4 introduces the concept of strict liability and the change in emphasis away from the fault of the manufacturer and towards the defectiveness of the product.
1 [1932] AC 562.
274 |
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Negligence and the rise of product liability |
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Section 5 deals with the different types of defect, namely, manufacturing |
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defects; design defects; and ‘duty to warn’ defects. |
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Section 6 looks at the development of strict liability and the policies that led |
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to this movement in liability for product-related injuries. The section consid- |
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ers liability in the United States under the decision in Greenman v. Yuba Power |
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Products2 and the Second and Third Restatements of Torts; the approach in |
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the United Kingdom with the recommendations of the Pearson Commission |
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and the Joint Law Commissions; the recommendations of the Strasbourg |
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Convention; the development, underlying policy and impact of the EC |
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Directive on product liability, including a review of the EC Directive since its |
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passage. |
2â Background
Tortious liability for injuries caused by defective products is relatively recent when compared with contractual liability. The contractual requirement of merchantable quality was recognised in the early nineteenth century,3 while negligence only came to the fore with the decision in Donoghue v. Stevenson4 in 1932. The advent of strict liability in the United Kingdom in Part I of the Consumer Protection Act 1987 further developed tortious liability and has resulted in the current two-strand regime, namely, negligence and product liability, both of which are important in providing comprehensive protection for both persons and businesses affected by defective products.
Strict liability has not replaced negligence; rather, the two regimes complement each other. Thus, claims for product-related death and personal injury can be made through both regimes, although, it may be preferable to make a claim under strict liability as it merely requires proof of defectiveness and causation without any requirement to prove fault. However, if the tenyear cut-off period for a strict liability claim has expired, the claimant may still be able to claim in negligence, assuming that the claim complies with the applicable time limits.5 Further, negligence remains crucial in respect of claims for property damage as the two systems diverge in respect of what liability will arise. While damage to personal property over £275 can be claimed under both systems, tortious claims for damage to all business property and personal property of less than £275 can only be made through negligence. Given the potential range of damage that may be caused by a single incident, it is entirely possible that a claim will include both negligence and strict liability. Further, if the injured party purchased the defective product, a claim may also lie in contract for breach of terms relating to satisfactory
2 |
377 P.2d 897 (1963), Supreme Court of California. |
3 |
Gardiner v. Gray (1815) 4 Camp. 144.â 4â [1932] AC 562. |
5 |
See the Limitation Act 1980. |