I’m a small manufacturer of boutique coffee machines. I've been threatened with legal action by a recent customer. I have a robust quality assurance regime in place and I personally check every item before it leaves my warehouse. I want to defend the claim. What kind of defences are available?
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Answer by Shamila Khan, Kingsville 3012 VIC
- As a manufacturer you can defend an action under the Australian Consumer Law on the basis that:
- the safety defect did not exist at the time the goods were supplied to the retailer or the consumer;
- the safety defect occurred only because the goods were manufactured in compliance with an applicable mandatory standard (if this is the case the Commonwealth government who implemented the standard may be responsible for paying compensation to the victim);
- the scientific or technical knowledge to detect the safety defect did not exist at the time the product was manufactured; or
- you manufactured a component of a finished product and the defect is attributable to a problem with the finished product rather than the component itself being defective.