PRODUCT LIABILITY 1 Maria Cristina O´Reilly Buenos Aires October 16, 2008

PRODUCT LIABILITY 2 AGENDA –LEGAL COURSES OF ACTIONS –CASES BROUGHT TO ARGENTINE COURTS FOOD DEVICES / APPLIANCES PRODUCTS IMPACTING SAFETY –PUNITIVE DAMAGES CLASS ACTIONS

PRODUCT LIABILITY 3 LEGAL COURSES OF ACTIONS –Liability –Administrative Sanction –Criminal Lawsuit –Civil or Commercial lawsuit

PRODUCT LIABILITY 4 CASES BROUGHT TO ARGENTINE COURTS –FOOD Rarely brought to Court Normally solved before a trail Highlights of an actual case in Court of Appeal –Food in bad conditions for consumption –Several tests performed –Burden of proof

PRODUCT LIABILITY 5 CASES BROUGHT TO ARGENTINE COURTS (cont) –CARS, ELECTRONIC DEVICES, APPLIANCES Generally with actual or hidden deffects –Turn the product not suitable for its original purpose –Restrict / Diminish its usage Legal framework for the plaintiff –Ask for price differential compared to a flawless new product –Resolution of the contract with mutual refunds –Product replacement

PRODUCT LIABILITY 6 CASES BROUGHT TO ARGENTINE COURTS (cont) –PRODUCTS NEGATIVELY IMPACTING SAFETY Example of case brought to court –Soda that exploded when taken from Supermarket shelf –Manufacturer and Supermarket Chain liable –Wide liablity (moral, esthetical, lost profits) –Objective Responsibility

PRODUCT LIABILITY 7 PUNITIVE DAMAGES –CLASS ACTIONS