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Defective Products

Legislation imposes statutory warranties in relation to the supply of goods. These include warranties of merchantable quality and fitness for purpose in relation to goods. These warranties are contractual and apply as between the seller and the buyer.

In the case of "consumer" type goods this extends to cover not only the buyer of the goods but other subsequent buyers ie every person who eventually comes to own goods can sue a corporate manufacturer for defects: Trade Practices Act (Part V Division 2). These claims must be commenced within 3 years of becoming aware of the defect.

Strict Liability

Strict liability applies in respect of injuries or damage to private property caused by defective goods supplied by a corporation ie a company. A supplier (importer, manufacturer and sometimes retailer) is liable to anyone who suffers injury regardless of whether they own the goods. Damage to commercial property and loss of profits is excluded.

Goods are defective if they do not provide the level of safety which the community is generally entitled to expect. The appropriate level of safety varies depending on the nature of the product, warnings given, manner of marketing and their packaging. Liability applies without proof of negligence ie it is strict. There are some defences available to manufacturers, including where the defect arises after manufacture or if the goods are "state of the art".

The claim for injury must be commenced within 3 years of you becoming aware (or from when you ought reasonably to have become aware) of:

There is a further time limit of 10 years from the date of "supply" of the goods by the manufacturer within which the claim must be begun.

If a manufacturer is unknown there are procedures to compel the seller to identify it and failure to do so will lead to the seller thereof being deemed to be the manufacturer.

Workers can not claim on this basis when injured by faulty equipment. They have been excluded from the benefit of "strict liability" if they have an entitlement to workers' compensation. Workers can take advantage of the other implied warranties of fitness for purpose and merchantable quality in bringing claims against suppliers of faulty equipment and can also proceed in negligence.