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SUPPLIERS: GOODS SUPPLIED FROM 24 APRIL SUBJECT TO DAMAGES RISK
Consumers as well as suppliers of goods and services need to bear in mind that, although most of the provisions of the Consumer Protection Act will only come into force on 24 October 2010, certain "transitional provisions" apply from 24 April: -
- Although the Act will generally not apply to "pre-existing transactions and agreements", some exceptions will apply to relationships still in effect on 24 October; and
- The liability of all suppliers of goods to pay damages caused by defective goods "applies to any goods that were first supplied to a consumer on or after" 24 April. The danger here (for everyone in the supply chain) is that liability is "strict" or "no fault", i.e. you are liable even if you have not been in any way negligent.
Consumers: remember that your rights under the new Act only become enforceable in October.
Suppliers: your risk starts now. Manage it: -
- Take legal advice on the extent of your exposure, have all your supply contracts checked, and beef up your quality control procedures
- Check whether your "product liability" insurance will cover you for claims in terms of the Act.
Recent Articles for April 2010;
Source: www.dotnews.co.za
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