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Liability Risk and Insurance

Parent company and liability for defective products

In a claim under the Consumer Protection Act 1987 based on the rights conferred under Council Directive 85/374/EEC concerning liability for defective products, which by article 11 required proceedings to be brought against the producer within ten years of the product being put into circulation, domestic law could not allow the producer to be substituted as the defendant outside that period in place of a wholly-owned subsidiary (who was the supplier but had been erroneously thought to be the producer) unless the parent company had actually determined when the supplier put the product in circulation.

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