Expanding the Boundaries of Liability for Quality Defects

This paper proposes a system of liability for quality defects which is based on five key principles: fairness, giving effect to consumers' legitimate expectations, ensuring the quick and efficient provision of redress, rationality, and avoidance of circuity. The system of exclusive seller liability is examined and rejected. Instead, the authors propose that a manufacturer should be directly liable to a consumer. Furthermore, where a manufacturer utilises a distribution network, the members of such networks should also be directly liable to the consumer, but have a right of indemnity against the producer. The authors consider the conceptual justifications and deal with likely difficulties of such a system of liability. Their conclusions are that the system of liability they propose would entail a change of attitude to the way liability for quality defect is allocated, but would accord with the five key principles this discussion is based on.