Subject Area - Law Consumer Protection Act (CPA)
This case study concerns the liability of a manufacturer of a product for harm which is suffered by the “ultimate consumer” of that product. It is important to consider the remedies that would be available in contract and under the doctrine of tortuous liability for defective goods. There is privity of contract in the relationship between Pamela and Cooks Stores and, therefore, in contract a remedy would be available to Pamela only. To invoke such a remedy under contract, Pamela should be able to rely on the terms implied into the contract by the Sale of Goods Act 1979, such as provided under s. 14 (2B) by which goods are not of satisfactory quality if they are unsatisfactory in terms of safety and durability, according to the standards of a reasonable person. The SGA provides recourse to a seller and, therefore, this act should enable Pamela to reclaim the £175 purchase price of the food processor from Cooks Stores. According to the “narrow rule” in Donoghue v Stevenson a manufacturer owes a duty to the customer to take reasonable care when he sells goods in the form in which he intends them to reach the ultimate consumer with no reasonable possibility of intermediate examination. This rule is a variety of negligence and creates a regime of fault-based liability on the part of manufacturers, which will include retailers, such as Cooks Stores, alongside Price (UK) Ltd. Both Pamela and Rose are potential claimants since here they are both “ultimate consumers” and the rule covers those who receive goods as presents and bystanders. To bring an action in tort Rose, as the claimant, would have to show the existence of a duty of care, breach and causation. Rose might have a cause of... [continues]
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