The legal concept of the one-stop producer who manufactures every part of his product himself before assembling it has long felt like a historical description and is barely seen now in practice, with ever lower vertical integration. This division of labor in production creates new questions, particularly with regard to how areas of responsibility are divided between supplier and end producer.
Liability of the producer of the end product
The end producer or assembler, who puts the individual product components together, has overall liability for the end product being free from defects.
In the area of design, the end producer must ensure that the product part purchased from the supplier fulfills the function for which the end product is intended to be used, in accordance with the material specifications and load capacity parameters. So one of the most important tasks of the end producer is to specify the supplied product correctly and in detail. He must describe this precisely (e.g. material type, material properties, degree of hardness, dimensions, tolerance ranges, weight, manufacturing specifications, load capacity, reject ppm values, test methodologies etc.). Through precise target specifications he must also ensure that the supplied product does not show any safety-related defects (e.g. description of all operating conditions, application areas, operating hours, information regarding peak load, potential for excess mechanical stress, potential for misuse).
In terms of manufacturing, it is the responsibility of the end producer to ensure that the correct material is selected and used in the production of the supplied products. If the end producer does not come to an agreement with the supplier about the way in which the product is to be manufactured, whether through instruction or contractual agreement, he must undertake a type test of the supplied product in accordance with the latest state of scientific and technical knowledge.
Example: The material, diameter and thread of screws should be tested for load capacity; bottles of mineral water for pressure resistance; carry handles and mounting brackets for tear strength.
These testing obligations can be delegated in part to the supplier; in practice this is often achieved through quality assurance agreements. These will relate to the design and manufacture of the product and will specify certain quality assurance measures and test techniques. In practice, the details are legally very demanding.
For the necessary specifications and inspections or tests, reference is often made to a technical standard. Additional quality assurance measures such as a feasibility study result in the supplier’s implementation program.
Case law has decided that the end producer can rely on the fact that the supplier builds the components to the contractually agreed quality requirements and inspects the quality himself. By selecting a renowned supply company who will carry out a thorough inspection, secure the necessary certification for the component and conclude quality assurance agreements, the end producer can reduce the level of his own inspection work.
An end producer must also warn against any hazards resulting from the danger associated with the supplied product. What’s more, the end producer is obliged to forward the usage instructions or warnings provided by the supplier to the user of the product, and to incorporate these into the overall operating manual that he will produce.
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| Liability of the producer of the end product |
The end producer or assembler, who puts the individual product components together, has overall liability for the end product being free from defects.
In the area of design, the end producer must ensure that the product part purchased from the supplier fulfills the function for which the end product is intended to be used, in accordance with the material specifications and load capacity parameters. So one of the most important tasks of the end producer is to specify the supplied product correctly and in detail. He must describe this precisely (e.g. material type, material properties, degree of hardness, dimensions, tolerance ranges, weight, manufacturing specifications, load capacity, reject ppm values, test methodologies etc.). Through precise target specifications he must also ensure that the supplied product does not show any safety-related defects (e.g. description of all operating conditions, application areas, operating hours, information regarding peak load, potential for excess mechanical stress, potential for misuse).
In terms of manufacturing, it is the responsibility of the end producer to ensure that the correct material is selected and used in the production of the supplied products. If the end producer does not come to an agreement with the supplier about the way in which the product is to be manufactured, whether through instruction or contractual agreement, he must undertake a type test of the supplied product in accordance with the latest state of scientific and technical knowledge.
Example: The material, diameter and thread of screws should be tested for load capacity; bottles of mineral water for pressure resistance; carry handles and mounting brackets for tear strength.
These testing obligations can be delegated in part to the supplier; in practice this is often achieved through quality assurance agreements. These will relate to the design and manufacture of the product and will specify certain quality assurance measures and test techniques. In practice, the details are legally very demanding.
For the necessary specifications and inspections or tests, reference is often made to a technical standard. Additional quality assurance measures such as a feasibility study result in the supplier’s implementation program.
Case law has decided that the end producer can rely on the fact that the supplier builds the components to the contractually agreed quality requirements and inspects the quality himself. By selecting a renowned supply company who will carry out a thorough inspection, secure the necessary certification for the component and conclude quality assurance agreements, the end producer can reduce the level of his own inspection work.
An end producer must also warn against any hazards resulting from the danger associated with the supplied product. What’s more, the end producer is obliged to forward the usage instructions or warnings provided by the supplier to the user of the product, and to incorporate these into the overall operating manual that he will produce.
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