In accordance with § 1 para. 1 of the Product Liability Act, the producer is primarily liable. This is defined as the actual producer of the finished product, component or raw material. The producer usually has a market presence as an AG, GmbH or some other company or corporate form. As a result, the company’s liability is limited.
Assembling and mere product completion
Anyone who assembles the product from parts that other producers have pre-assembled, without any in-house manufacturing (often called an assembler), is also deemed to be the producer. In practice it can be difficult to distinguish between this sort of assembler activity and product completion, which is categorized as a typical agent activity. If a product’s safety-related properties are modified, it can always be assumed that this is the activity of a producer. A relevant pointer is whether the assembly could be achieved by a layperson with no design or technical knowledge, with simple hand movements and without any special tools. Another
relevant factor is whether the assembled product represents a stand-alone product in comparison with the subproducts.
The company that assembles table frames and glass plates into bistro tables should be regarded as a producer and not merely an agent.
By contrast, the company that only apportions and packages a finished product, such as a safety switch or servo amplifier, should not be regarded as a producer.
Liability of the quasi-producer
The quasi- producer is also liable in addition to the actual producer. In accordance with § 4 para. 1 clause 2 of the Product Liability Act, any person who, by putting his name, trademark or other distinguishing feature on the product, presents himself as its producer, shall have legal equality with the producer. This means anyone who presents himself on the market as the actual producer. This liability as quasi-producer has repercussions for mail order businesses and chain stores who have goods manufactured for them and then offer the product with their own trademark or company label. The same applies to industrial suppliers who complete their full range under their own label by purchasing commodities.
The “Produced for …” tag does not justify a status as quasi-producer because the very tag illustrates the point that someone other than the product supplier is the producer.
It is irrelevant whether it’s the actual producer or the quasi-producer who applies the name, trademark or any other feature of the quasi-producer to the product. And neither is it necessary for the producer to give his consent before the third party mark is applied. The definitive factor in the liability of the quasi-producer is that the product is put into circulation with the name or trademark of the quasi-producer and with his approval.
Assembling and mere product completion
Anyone who assembles the product from parts that other producers have pre-assembled, without any in-house manufacturing (often called an assembler), is also deemed to be the producer. In practice it can be difficult to distinguish between this sort of assembler activity and product completion, which is categorized as a typical agent activity. If a product’s safety-related properties are modified, it can always be assumed that this is the activity of a producer. A relevant pointer is whether the assembly could be achieved by a layperson with no design or technical knowledge, with simple hand movements and without any special tools. Another
relevant factor is whether the assembled product represents a stand-alone product in comparison with the subproducts.
The company that assembles table frames and glass plates into bistro tables should be regarded as a producer and not merely an agent.
By contrast, the company that only apportions and packages a finished product, such as a safety switch or servo amplifier, should not be regarded as a producer.
Liability of the quasi-producer
The quasi- producer is also liable in addition to the actual producer. In accordance with § 4 para. 1 clause 2 of the Product Liability Act, any person who, by putting his name, trademark or other distinguishing feature on the product, presents himself as its producer, shall have legal equality with the producer. This means anyone who presents himself on the market as the actual producer. This liability as quasi-producer has repercussions for mail order businesses and chain stores who have goods manufactured for them and then offer the product with their own trademark or company label. The same applies to industrial suppliers who complete their full range under their own label by purchasing commodities.
The “Produced for …” tag does not justify a status as quasi-producer because the very tag illustrates the point that someone other than the product supplier is the producer.
It is irrelevant whether it’s the actual producer or the quasi-producer who applies the name, trademark or any other feature of the quasi-producer to the product. And neither is it necessary for the producer to give his consent before the third party mark is applied. The definitive factor in the liability of the quasi-producer is that the product is put into circulation with the name or trademark of the quasi-producer and with his approval.
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