Legal aspects international trade

1. Legal Aspects International Trade
PRODUCT LIABILITY
SUBMIT TO:
PROF. FERNANDO MONTERO
PRESENT BY:
AKASH PATEL-000332846
TEJAS BARVALIYA-000338855

2. CONTENTS
Introduction.
What is Product Liability?
What is Contractual Law?
What is Tort and Negligence Laws?
What are the Major Types of Product Liability Claims?
Three Theories Based on Which a product Liability Claim may be
Raised.
Liability and Damages.
Hauge International Convection.
Sale Goods Legislation.
Defences, Evidentiary Issues and Product Recall in Canada.
Quebec Product Liability.
 Conclusion.
References.

3. Product Liability:
Product liability is the area of law in which
manufacturers, distributors, suppliers, retailers, and
others who make products available to the public are
held responsible for the injuries those products cause.
Although the word "product" has broad connotations,
product liability as an area of law is traditionally
limited to products.
Lawsuits are expensive, complex and time consuming,
and liability is something entrepreneurs should
consider for every aspect of their supply chain.

4. CONTRACTUAL LAWS:
 A base of product liability is starting point of the contract, to express the clauses of
governing liability and if its not their then is their any governing law.
 CISG(Convention on Contracts for the International Sale of Goods) is main element in
most contracts, its is particularly state in Article 4 and 5 that it does not cover product
liability.
 Article 4: Convention acts only for formation of the contract of scale and the rights and
obligations of the seller and buyer arising from such contract, it is not concerned with:
1. The validity of contract or any of its provisions or of any usage.
2. The effect on which the contract may have on the property in the good sold.
 Article 5: This convention does not apply to the liability of the seller for death or
personal injury.
 Contractual law is an agreement having a lawful object entered into voluntarily by two or
more parties, each of whom intends to create one or more legal obligations between
them.
 A breach of or failure to meet contractual obligation are ground for product liability.

5. TORT & NEGLIGENCE LAWS:
TORT LAW: has evolved as the section of law that compensates the
section of law that compensates parties injured by others
(whether by other people or the products they produce) as
opposed to criminal law, which punishes acts deemed wrong by
society. Tort law also covers that part of the law where a non
contract damage or injury occurs.
Damage or injuries to consumer as manufacturer has not taken
every precaution to ensure safety and proper function of a
product, leave manufacturer open to product liability claim.

6. Predominantly there are the major types
of product liability claims by ground of
Negligence:
 Manufacturing defect: The product is not made according to specifications.
For example, a part is missing.
 Design defect: The product is built to specifications, but the specifications are
faulty and the manufacturer knew or should have known about the flaw. For
example, a bridge collapse due to incorrect engineering calculations.
 Failure to warn of potential hazards: Manufactures have a duty to warn
consumers about any defects or possible dangers in their products. For
example, dangerous long term effects using a pharmaceutical drug.
 In most countries, negligence laws have plaintiff to prove that damage or injury
is made by manufacturer
 In case of Tort law the basic rule of civil liability apply unless there is a criminal
law provision that punishes such acts.

7. Three Theories based on which a
product liability claim may be raised:
Negligence.
Breach of warranty,
A.Express warranty.
B.Implied warranty.
a)Of merchantability.
b)Of fitness for particular purpose.
Strict tort liability.

8. LEGISLATION:
Increased standards have meant safer products of higher quality for consumers and a mandatory commitment
to responsibility from manufacturers, suppliers and importers with regards to safety, complains and
regulations.
U.S. :- Most product liability laws are enacted at the same level and while they vary from state with regard
to standards of proof, since the 1960s most are based on strict liability as opposed to proving the
manufacturer’s negligence.
EU :- As of 1977, the EU also began to move toward the theory of strict liability to reinforce its commitment
to a common market where all members have common laws. In 1981 Treaty of the European Union states.
Australia :- Replacing the common law principles of tort that had governed compensation due to loss or injury
from product defects, Australia’s product liability law, enacted in 1992.
Taiwa:- In 1994, Taiwan imposed a strict liability law to replace the existing negligence-based laws that
required n injured parties to prove the manufacturer was at fault or negligent.
Japan :- Going into effect January 1, 1995, Japan’s product liability law holds a manufacturer responsible for
property damage or personal injury caused by a defect in a product.
Hong Kong :- The only product safety law in Hong Kong is the Toys and Children’s Product Safety Ordinance
(1993), which states that reasonable safety is required for all toys manufactured, imported or supplied.

9. LIABILITY AND DAMAGES
Product liability discourages manufactures from selling
defective products by forcing them, once found liable, to
compensate the injured party for perceived and actual
damages.
INTERNATIONAL CONVECTION ON PRODUCT LIABILITY
Hauge Convection on the Law Applicable to Products Liability
established common provisions with regards to international
product liability unless states are to some other public policy
or international agreement.

10. SALE OF GOODS LEGISLATION IN
CANADA
Sale of Goods legislation in the common law provinces
implies specific conditions into most contract of scale. The
specific conditions which the seller must meet are: that the
goods are fit for a specific purpose and that the goods are
of merchantable quality.
1.Application of Sale of Goods Legislation.
2.Fitness for purpose- Implied Condition.
3.Merchantable Quality- Implied Condition.

11. DEFENCES FOR CANADA
There are many general defences that may apply to a product liability claim. The most common are:
 Compliance with requisite standards, contributory negligence, assumption of risk, intervening
causes, misuse of products, learned intermediaries and limitation periods.
EVIDENTIARY ISSUES IN CANADA
While the rules of evidence in a product liability case are not different from any other negligence
case, careful consideration must be given to the following issues: burden of proof, causation, expert
evidence and spoliation.
PRODUCT RECALL IN CANADA
Companies involved in the business of manufacturing and distributing either automotive products or
food and drug products may be subject to mandatory recalls required by law and/or initiated by
government regulatory agencies.
Recalling a product is a planned action that is either voluntarily initiated by a manufacturer or
mandated by a government agency. Manufacturers, importers, distributors, retailers, repairers, as
well as consumers, are all impacted by a product recall.

12. QUEBEC PRODUCT LIABILITY
Quebec product liability law is not the same as in the rest of the country or
the US.
The province of Quebec distinguishes itself from the rest of Canada in that
its private law
is governed not by the common law, but by a Civil Code containing a
comprehensive set
of legal principles covering all aspects of civil law. Provincial statutes
complete this legal
framework. The general principles of Quebec product liability law are
contained in the
Civil Code, while specific provisions applicable to consumers only are
contained in the
Consumer Protection Act.

13. CONCLUSION
In Canada, CCSPA the laws governing product liability
has made the legal system more strong. The Judiciary
has helped to bring the concept of Product Liability with
in the reach. It makes the producer more careful to save
us from consumption of defective goods and services.
However, Canada remains a somewhat more judicially
conservative jurisdiction in term of damage awards but
perhaps that too will charge in due course.

14. REFRENCES & VIDEO
http://www.blg.com/en/NewsAndPublications/Documents/publication993
_EN.pdf
http://web.uslaw.org/wp-content/uploads/2013/10/Nigel-Kent-Jordan-
Watson-USLAW-mag-article.pdf
http://www.fasken.com/files/Publication/ddbc666d-d8a2-4b6e-9fc4-
3886505ab6e4/Presentation/PublicationAttachment/30b2dea4-73c3-411c-
a507-da3a7308ef8c/OVERVIEW_OF_QUEBEC_PRODUCT_LIABILITY_LAW.PDF
VIDEO
https://www.youtube.com/watch?v=ZBS2bHnz72A

15. Any Questions?