The Uganda Law Reform Commission conducted an extensive study on product liability with the primary aim of evaluating the existing legal framework concerning compensation for victims of injuries or damages caused by defective or unsafe products. The study highlighted significant shortcomings in the current laws, emphasizing the need for improved consumer protection and stricter liability for manufacturers, producers, and suppliers of goods.
Product liability, deriving from contract and tort law, holds manufacturers and intermediaries responsible for compensating consumers who suffer harm due to product defects. The study found that the current legal system based on privity of contract and the burden of proving fault in negligence cases was insufficient to safeguard consumers adequately.
Key findings of the study supported the need for legislation to establish strict product liability for defective products based on the following reasons:
Based on its findings, the study recommended the enactment of a comprehensive law imposing strict liability on manufacturers, producers, and intermediaries for compensating consumers affected by defective products. The proposed legislation would define a product as "defective" if it contains a manufacturing defect, design defect, or lacks adequate instructions or warnings.
To determine product defects, the legislation would adopt the Consumer Expectation Test for manufacturing defects, the Risk Utility Test for design defects, and the Foreseeability Test for warning or instruction defects.
The proposed strict liability law would place initial responsibility on those who create the risk leading to damage, primarily the manufacturer or producer. Other entities in the distribution chain, such as suppliers, retailers, wholesalers, importers, and trademark holders, would also be held liable as appropriate.
The legislation would include provisions to allow entities held liable for defective products to indemnify the original manufacturer or supplier. Strict product liability would cover all movable consumer products, including electricity, but exclude natural and agricultural products without industrial processing.
Notably, strict liability would be imposed without the need to prove fault, placing the burden on the injured party to demonstrate the defect, damages, and causal relationship.
The law would include several defenses against product liability claims, such as assumption of risk, contributory negligence, "State of the Art" defense (if the defect was not discoverable given the scientific and technical knowledge at the time of circulation), absence of the defect at the time of supply, and substantial and unforeseeable misuse of the product.
To ensure consumer safety, the proposed law would make it an offense to place unsafe products on the market and define the duties of producers and distributors, including the obligation to recall defective products. Enforcement authorities would possess the power to withdraw unsafe products from the market and prohibit further supply.
Lastly, the legislation would prevent any contract terms, notices, or provisions from limiting or excluding manufacturers' liability to injured consumers, safeguarding their essential protection.
Overall, the completed legal project strongly advocates for the enactment of comprehensive legislation to regulate defective products, aiming to provide robust consumer protection and promote accountability in product manufacturing and distribution.
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Completed Projects