Defective product
A company designs a new blockbuster drug. During the research process they find that the drug causes serious side effects and they fail to notify these to the regulator. The license for the drug is bought to a company who then goes on to sell the product throughout Europe. The failure to warn of the potential side effects of the product results in the product being defective, the R&D company is liable under the Consumer Protection Act as being a producer.
Strict Liability
A company designs and manufacturers an orthopaedic implant; however they outsource the manufacture of the implant to a contract manufacturer in India. The product is not manufactured to specification and is found to be defective. The company is liable under the Consumer Protection Act as they are the producer of that product. The company is strictly liable and is unable to avoid the claim even though they did not manufacture the product.
Failure to perform
A company designs and manufactures an in-vitro diagnostic devise which provides a false positive result, leading to the incorrect treatment being provided. The product has failed to perform its intended function.
Distribution
A company manufactures a sterile medical device. They outsource the storage and distribution to a third party specialist. The product is contaminated during the storage process and the contamination is not discovered. The product is then used on a patient, the contamination leads to infection and injury. The product is defective and the company is strictly liable under the Consumer Protection Act.
