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Manufacturers of the new breed of locally designed and built light aircraft need to be fully aware of the potential implications of the proposed product liability legislation due to come into effect later this year. Pictured is a Maverick single seat kit aircraft. (Greg Meggs)
Liability Law of Consequence to Aviation
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Proposed Liability Law Changes of Consequence to Aviation Industry
New product liability legislation currently before Federal Parliament will have important consequences for aircraft manufacturers and sellers, as well as product liability insurers in the aviation area.
The new laws, if enacted, will make it easier for people who believe they have been injured by defective products, or believe their property has been damaged by defective products, to seek compensation. Based primarily on the 1985 European Community Product Liability Directive, the new legislation was introduced into Federal Parliament in December 1991. Sources have indicated that by basing product liability reform on the European model, the Federal Government hopes to avoid the excessive payouts which are one of the more significant, and obviously less desirable, features of the American system.
A key difference between the European model and the new legislation before Parliament is the onus of proof. The European Directive requires the consumer to prove that the product was defective. However, under the proposed Australian legislation manufacturers may have to prove that the product in question was not defective.
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