ABSTRACT
The prudent retailer will be insured against his liability to pay damages to a customer who is injured by faulty goods. In such a case, it will be immaterial that the retailer is unable to pursue his action against his supplier. Furthermore, under the Third Parties (Rights Against Insurers) Act 1930, the rights under the insurance policy are transferred to the customer, whose claim is then met directly by the insurance company. It seems odd that the same rule does not apply to money paid by way of indemnity to the retailer by the party who sold the goods to the retailer.
