Ontarians rely on countless products to get them through their day, which are often taken for granted. Moreover, the likelihood of those products malfunctioning, resulting in loss or damage, is often not given much thought. Luckily, Ontario’s Sale of Goods Act creates implied obligations on sellers to sell products that are fit for their specified purpose and of merchantable quality, creating a “contract” between the parties that buyers can enforce if something goes wrong with a product.
This blog post will provide a general overview of the Sale of Goods Act and how it operates in the context of product liability claims.
What are Product Liability Claims?
Product liability claims arise when a consumer is injured or suffers other losses due to a defective or poorly designed product. These types of claims may be brought under contract or tort law, depending on whether a contract existed between the parties.
Some examples of common product liability claims include:
- Design defects: For example, if you are injured in a vehicle rollover that occurred (or was more likely to occur) due to a design defect.
- Manufacturing defects: For example, if you are injured by a seatbelt breaking due to a manufacturing defect.
- Failure to warn: For example, if you are injured after consuming medication that did not contain a warning regarding potential side effects or interactions.
What is the Sale of Goods Act?
The provincial Sale of Goods Act outlines the rights and responsibilities of buyers and sellers when goods are bought and sold in Ontario. “Goods” have a very broad definition under this piece of legislation, and refer to “all chattels personal, other than things in action and money, and includes emblements, industrial growing crops, and things attached to or forming part of the land that are agreed to be severed before sale or under the contract of sale.”
Notably, the Sale of Goods Act establishes that a contract is formed whenever a sale occurs in Ontario, even if there was not a “formal” contract in place when the goods were purchased.
The Ontario Sale of Goods Act and Product Liability Claims
The Sale of Goods Act creates certain implied warranties relating to sales in Ontario, as follows:
- If a buyer expressly or impliedly tells the seller that they will be using the goods they are purchasing for a particular purpose, there is an implied condition that the goods will be reasonably fit for the purpose the buyer is purchasing them for. In other words, products must serve the purpose they are sold for.
- When a buyer purchases goods from a seller who “deals in goods of that description”, there is an implied condition that the goods will be of merchantable quality. However, if the buyer examines the goods and fails to notice a defect that they should have noticed, they will not be able to rely on this implied condition.
If a product purchased does not meet these implied warranties, the seller will likely be found liable for breach of contract without the claimant needing to prove that the seller was at fault and/or negligent. This is referred to as “strict liability”. As a result, the claimant can either repudiate the contract or claim damages from the seller.
Bringing a Product Liability Claim under the Sale of Goods Act
A buyer can bring a product liability claim against a seller under the Sale of Goods Act due to the implied contract established when goods are purchased in Ontario. However, this raises the question of whether the buyer can bring a product liability claim against both the seller and the manufacturer?
Note that the Sale of Goods Act does not create a contractual relationship between the manufacturer and the buyer, but rather, the implied contract only applies to the buyer and seller. However, the buyer can still bring a product liability claim in contract against the manufacturer in many cases if the manufacturer provided a warranty relating to the use or quality of the product.
Remedies for Product Liability Claims under the Ontario Sale of Goods Act
If a claimant can successfully advance a product liability claim under the Sale of Goods Act, or otherwise advance a product liability claim in contract, they may be able to recover compensation for losses or damages sustained due to the product in question. This compensation may include compensatory damages (such as medical expenses or income loss) and non-pecuniary damages (such as pain and suffering, emotional distress, and loss of enjoyment of life).
The Impact of the Sale of Goods Act on Product Liability Claims
Product liability claims are typically brought against the product manufacturer that caused the claimant’s loss or injury. However, because the Sale of Goods Act creates a contract between the buyer and the seller, it can also create liability for sellers if the buyer suffers harm or loss due to the product in question. In some cases, this opens up the option to bring a claim against both the manufacturer and seller of the product.
Ultimately, determining who to bring a product liability claim against – and whether to bring a product liability claim in contract law or tort law – depends on the unique circumstances of the case. For this reason, it is important to seek legal advice from an experienced product liability lawyer if you have suffered injuries or losses due to a product, as they will be in the best position to advise you on your rights and the best course of action moving forward.
Contact the Waterloo Product Liability Lawyers at Campbell Litigation
When a person is injured or suffers loss due to defective product, they may be entitled to compensation for their injuries. The experienced personal injury law team, led by Richard Campbell, at Campbell Litigation can help victims of defective products navigate the product liability process, including determining how and who to bring a claim against and obtaining the maximum compensation for your case. To speak with a member of our team regarding your potential claim, contact us online or by phone at 519.886.1204.
