16 Min
Homepage
/ Blog
Product liability, guarantee & warranty
If an accident occurs due to a faulty product, the question of liability often arises. Is the manufacturer, the retailer or perhaps even the customer responsible?
First of all, a distinction must be made between damage to a faulty product and damage caused by a faulty product. The former can often be exchanged for a flawless product from the manufacturer. However, if there is a serious accident due to damage to the product, the material damage or, worse still, personal injury must be paid for by the manufacturer involved. This damage can quickly result in costs in the millions. The customer can generally turn to the manufacturer and claim compensation, as the manufacturing company is responsible for the quality of its products.
In Germany and the other EU member states, these legal disputes are uniformly regulated by the Product Liability Act. Put simply, in the event of damage, the manufacturer is liable regardless of which country the company comes from within the European Economic Area. As a customer or end consumer, you are therefore generally well protected and not involved in complex contractual disputes between the various players.
If a company imports goods from a third country into the European Union, the situation changes. According to the Product Liability Act, the person placing the goods on the market in the EU is liable to prosecution. This means that the importer is now responsible for the purchased goods and no longer the manufacturer, as is the case with European domestic trade. Exceptions may apply if a declaration of assumption of liability has been signed between the business partners.
However, there are also ways for importers to avoid claims for damages. Product damage can be prevented by imposing specific requirements on the manufacturer that comply with European safety standards. The importer should also carry out sufficient quality testing on the products. Manufacturers, importers or intermediaries can also take out insurance. These product liability insurance policies cover the costs arising from property damage, personal injury or other expenses.
Insurance also minimizes the risk of manufacturers having to file for insolvency due to enormous claims for damages and customers being left with their costs.
For many customers, a guarantee is a safeguard and therefore increases the incentive to buy. However, many people often confuse the meaning of guarantee and warranty.
The warranty for a specific commercial good is enshrined in the German Civil Code. It comes into force from the time of purchase and can be claimed by the customer if defects occur in the product that are not due to wear and tear. The warranty is normally valid for two years. In the event of damage, the product can be returned and either repaired or exchanged for a new item.
The statutory warranty obligation also applies to imports from abroad. The prerequisite for this is that the intermediary is also located in Germany.
In contrast to the warranty, the guarantee is a voluntary service provided by the company. With a guarantee, the manufacturer promises to rectify any defects that occur in the future free of charge. There are no legal requirements. Guarantees usually serve to create a basis of trust and thus increase the probability of concluding a contract. The period during which the guarantee is valid usually exceeds that of the warranty.
