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Product liability under the CISG and Concurring tort law claims ...

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anty has been given from a manufacturer. The reason for this is that <strong>the</strong> Convention does not govern third<br />

party <strong>claims</strong> cf. art 4 <strong>and</strong> thus can not provide <strong>the</strong> legitimacy of such <strong>claims</strong>.<br />

In any event it will usually be much easier <strong>and</strong> less expensive for <strong>the</strong> ultimate buyer to sue his seller since<br />

<strong>the</strong> ultimate buyer <strong>and</strong> his seller are usually located in <strong>the</strong> same State. The consequence of this is that <strong>the</strong><br />

Convention does not apply cf. art 1(1) <strong>and</strong> instead domestic <strong>law</strong> will be applicable, which is both more convenient<br />

<strong>and</strong> possibly more favorable for <strong>the</strong> ultimate buyer <strong>the</strong>n applying <strong>the</strong> Convention. It is <strong>the</strong>refore<br />

unlikely that <strong>the</strong> Convention will play a large role in regards to ultimate buyer´s <strong>claims</strong> against manufacturers<br />

<strong>and</strong> <strong>the</strong> Conventions role will likely be confined to situations, where <strong>the</strong> distributor in question has experienced<br />

a financial difficulty, <strong>the</strong>reby forcing <strong>the</strong> ultimate buyer to claim damages elsewhere. 62<br />

3.2. Summary<br />

In this section it has been concluded that <strong>claims</strong> based on damage to property as a result of defective goods<br />

sold in an international transaction, is governed by <strong>the</strong> Convention. This is stated directly in <strong>the</strong> legislative<br />

history <strong>and</strong> also follows from <strong>the</strong> wording of art 5 <strong>CISG</strong>. Thus <strong>the</strong> buyer can claim damages for <strong>the</strong> loss incurred<br />

according to art 45(1)(b) <strong>CISG</strong>, if <strong>the</strong> notice requirements in art 39 <strong>CISG</strong> <strong>and</strong> <strong>the</strong> preconditions in art<br />

74 <strong>CISG</strong> have been fulfilled.<br />

DAMAGE TO PROPERTY CAUSED BY FAULTY GOODS IS TRADITIONALLY GOVERNED BY DOMESTIC PRODUCT LIABILITY LAWS.<br />

CONSEQUENTLY, THERE IS AN OVERLAP BETWEEN DOMESTIC LAW AND THE CONVENTION AND THIS OVERLAP CREATES<br />

ISSUES WITH concurring CLAIMS. HOW TO RESOLVE THESE ISSUES IS DISCUSSED IN SECTION 4 OF THIS THESIS.<br />

In conjunction with <strong>the</strong> increasing globalization in trade, chains of contracts have become an important<br />

focus point in domestic product <strong>liability</strong> <strong>law</strong>s. This does not impact <strong>the</strong> use of <strong>the</strong> Convention, because <strong>the</strong><br />

Convention is only concerned with <strong>the</strong> contract of sales between a seller <strong>and</strong> a buyer cf. art 1 <strong>and</strong> 4 <strong>CISG</strong>.<br />

Whe<strong>the</strong>r or not a third party claim can legitimately be raised depends entirely on domestic <strong>law</strong>.<br />

4. CONCURRING CLAIMS<br />

4.1. Introduction<br />

Contracting states of <strong>the</strong> Convention are bound by public international <strong>law</strong> to apply <strong>the</strong> Conventions provisions<br />

within <strong>the</strong> anticipated sphere.<br />

The general principle is that exclusivity of uniform <strong>law</strong> is to be assumed, which protects <strong>the</strong> balance between<br />

<strong>the</strong> buyer <strong>and</strong> <strong>the</strong> seller. Domestic <strong>law</strong> should <strong>the</strong>refore not be permitted to interfere with <strong>the</strong> balance<br />

created in <strong>the</strong> Convention. If a matter is governed by <strong>the</strong> Convention, <strong>the</strong> Convention takes priority<br />

<strong>and</strong> preempts <strong>the</strong> use of concurrent remedies <strong>under</strong> domestic contract <strong>law</strong>.<br />

Thus contractual <strong>claims</strong>, based on an international sale of goods, have to be determined exclusively by <strong>the</strong><br />

Convention. If <strong>the</strong> lex fori classifies product <strong>liability</strong> <strong>claims</strong> as contractual <strong>claims</strong>, domestic rules cannot be<br />

applied concurrently with <strong>the</strong> Convention. The possibility of having concurring <strong>claims</strong> based on both <strong>the</strong><br />

62 Honnold, Fourth edition page 77 para 63 who agrees with this conclusion.<br />

RETTID 2012/Specialeafh<strong>and</strong>ling 26 18

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