Product liability is the unsaid undertaking that a seller agrees to compensate for the damages and injuries caused by defective or substandard merchandise sold by him/her. If the product post-purchase brings harm to the consumer, a case of Cause of Action can be filed against the manufacturer, designer, furnisher or seller of the same. Most damages may be negligible but a few can be fatal.
Product Liability Singapore
Product liability is covered under Commercial Insurance Singapore. There exists no specific governing body that supervises the manufacturer liability claims. Handling of liability claims is limited to contracts between suppliers or seller and negligence against the manufacturers.
In order to claim a case of product liability, the existence of the discrepancy must be proved, followed by the failure of abiding by the set standards which resulted in the damages the customer bore. That, which can be termed as negligence, is specific to the case in question. There is no golden rule to identify the case of negligence.
An example of negligence is when care is demanded of but not exercised and leads to personal damage. Also those events that can lead to the death of the consumer are a grievous negligence. If negligence is minimal and does not cause any permanent harm, it is excusable.
Claims can be made by only those who are bound by a contract and if the supplier is guilty of a breach. In these cases, there is strict liability and proof of breach of contract.
Two Acts, namely the Sale of Goods Act and Supply of Goods Act, govern the standard conditions of contractual sale. If the buyer at the time of purchase finds the goods satisfactory and similar to the sample described, the seller is not liable.
The consumer rights, on the other hand, are regulated by the Unfair Contract Terms Act, which prevents restriction or exclusion of the implied goods conformity against the sample description or quality.
Consumer rights protection statutes:
Section 4 of the Consumer Protection (Fair Trading) Act lists out the specific supplier behavior with the consumer which can attract liability claims, of which false claims is an example. There is an additional second Schedule that lists out unfair practices. A common unfair practice is to type out important clauses in fine print to conceal the importance or mislead the customer.
We at Allegiance can clear out any preconceived notions held on product liability; contact our experts today for further clarifications.