Manufacturing Liability Litigation
Manufacturing liability law in Australia is regulated by a combination of legislation and common law principles. The main legislation that controls manufacturing liability is found in the Competition and Consumer Act 2010 (Cth), and in particular, the Australian Consumer Law.
This is often supported by other pieces of legislation, for example, if a caravan manufacturer was in breach of the Petroleum and Gas (Safety) Regulations 2018 (Qld) by failing to fix a gas stove in accordance with Australian Standards, the Australian Consumer Law may consider it unsafe.
Manufacturers can get into financial trouble when thousands of items have been sold; for example, the Takata Corporation went bankrupt, primarily due to the Takata airbag recall across the world, but so do other companies. Recalls include anything from the inclusion of button batteries in a certain product to a worldwide recall, as was the case with Takata.
Manufacturer’s liability includes issues of:
- Negligence, which is the failure to exercise reasonable care to prevent the product defects arising out of the manufacturing process or failure to give consumers appropriate warning of a danger (this exists at common law and in the Australian Consumer Law); and
- Warranty, which entails failure to fulfil the terms of a claim or promise concerning the performance of quality of specific product.
Many provisions within the Australian Consumer Law cannot be avoided by an exclusion clause in a contract, making compliance compulsory. When a dispute arises the correct strategy, which usually involves early intervention, is paramount.
Call Gibbs Wright Lawyers today about your specific Manufacturing Liability Dispute.