ABSTRACT
Products liability arises from the design, manufacture, modification, supply and other forms of dealing with a product. Such liability is governed by domestic law. In many legal systems it is possible for the seller to exclude his liability by way of an express clause in the contract, called in the USA an “exculpatory clause”. The purpose of the clause is often to exempt the supplier from liability for the supply of the defective product itself and all liability caused by defect. The plaintiff was injured by a defective bicycle he hired from defendants under a contract which provided that “Nothing in this agreement shall render the owner liable for personal injury”. The court held that the wording excluded strict liability in contract but not liability for negligence in tort. Strict products liability attaches to the carrying on the business of selling products for use or consumption. It applies to all persons in production process, manufacturer, designer, wholesaler, retailer or distributor.
