LAW OF OBLIGATION ACT, PART 10, CHAPTER 53, DIVISION 3

Division 3

Liability for Defective Product 

  • 1061. Liability of producer

(1) The producer shall be liable for causing the death of a person and for causing bodily injury to or damage to the health of a person if this is caused by a defective product.

(2) If a defective product causes the destruction of or damage to a thing, the producer shall be liable for damage caused thereby only if:

1) this type of thing is normally used outside economic or professional activities, and

2) the victim mainly used the product outside the economic or professional activities of the victim, and

3) the extent of the damage exceeds an amount equal to 500 euros.

(3) The producer shall not be liable for damage caused to the product itself by a defect.

(4) The producer shall be liable for a defective medicinal product on the basis of the provisions of this Division unless otherwise provided by law.

(5) The provisions of this Division do not preclude or restrict the right to make claims on any other legal basis, including claims for compensation of unlawfully and wrongfully caused damage.

[RT I 2002, 53, 336 – entry into force 01.07.2002]

  • 1062. Producer

(1) The following are deemed to be producers:

1) a person who manufactures a finished product, raw material or part of a product;

2) a person who claims to be the manufacturer of a product and indicates the person’s name, trade mark or other distinctive mark on the product;

3) a person who brings a product into Estonia or into a member state of the European Union in the course of the person’s economic activities with the objective of selling, leasing or marketing of the product in any other manner.

(2) If the producer cannot be identified, any person who has delivered the product to a victim shall be deemed to be the producer if such person does not disclose the identity of the producer or the person who delivered the product to the person within a reasonable time after the victim has made a corresponding proposal.

(3) The provisions of subsection (2) of this section also apply to products brought into Estonia or into a member state of the European Union if the importer of such products cannot be identified, even if the name of the producer thereof is known.

  • 1063. Product

(1) Any movable is deemed to be a product, even if the movable constitutes a part of another movable or if the movable has become a part of an immovable, and electricity and computer software are also deemed to be movables.

(2) A product is defective unless it is safe to an extent which corresponds to a person’s legitimate expectations, bearing in mind all the circumstances, and above all:

1) the manner and conditions of presentation of the product to the public;

2) the method of use of the product which the victim can reasonably presume;

3) the time of placing the product on the market.

(3) A product shall not be deemed to be defective solely for the reason that a product with better characteristics is later placed on the market.

  • 1064. Release of producer from liability

(1) The producer shall not be liable for damage arising from a product if the producer proves that:

1) the producer has not placed the product on the market;

2) circumstances exist on the basis of which it may be presumed that the product did not have the deficiency which caused the damage at the time that the product was placed on the market by the producer;

3) the producer did not manufacture the product for sale or for marketing in any other manner produce or market it in the course of the producer’s economic or professional activities;

4) the deficiency is caused by the compliance of the product with the mandatory requirements as at the time of placing the product on the market;

5) due to the level of scientific and technical knowledge at the time of placing the product on the market, the deficiency could not have been detected.

(2) In addition to the bases for release from liability provided for in subsection (1) of this section, a producer of raw material or a part of a product shall not be liable for damage if the producer proves that the deficiency of the raw material or part of the product is caused by the construction of the finished product or the instructions provided by the producer of the finished product.

(3) The liability of the producer shall not be reduced if the damage occurs due to both a deficiency of the product and the behaviour of a third party.

  • 1065. Victim’s burden of proof

The victim shall prove the existence of damage, the deficiency of a product, and a causal relationship between the deficiency of the product and the damage caused.

  • 1066. Limitation period for and termination of claims

(1) The limitation period for claims arising from the provisions of this Division is three years as of the date on which the victim becomes aware or should reasonably become aware of the damage, the deficiency and the identity of the producer.

(2) Regardless of the provisions of subsection (1) of this section, claims which arise from the provisions of this Division shall terminate after ten years have passed as of the date on which the product which causes damage is placed on the market, unless an action has been filed with a court by that time.

(3) The provisions of subsection (2) of this section do not apply to claims recognised by a court decision entered into force or arising from another execution document, or to claims the existence of which is recognised by a contract, or to claims arising from a new right acquired on the basis of a compromise contract.

  • 1067. Mandatory nature of provisions

An agreement which restricts or precludes the liability of a producer as provided for in this Division is void.

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