Par atbildību par preces un pakalpojuma trūkumiem, Liability for Damage Caused by Defects in Goods and Services (Directive 85/374/EEC)

The Act "Par atbildību par preces un pakalpojuma trūkumiem" (Liability for Defects in Goods and Services) includes, according to its informative reference, legal norms that derive from Directives 85/374/EEC and 1999/34/EC. Section 1 regulates liability for damage done to a person's life, health or property by defects in goods or services. Section 2 leaves untouched the injured person's right to claim compensation under other laws.

Section 3(1) applies the Act to any movable corporeal thing, including one that is part of another movable or immovable thing, and to electricity and gas. Section 3(2) applies the Act to services whose result is that the provider makes a new corporeal thing or improves or alters an existing one or its properties, and to services that have a direct or indirect effect on a person's life or health.

Section 5(1) makes the producer of the goods or the provider of the service liable to compensate the injured person for the damage that defects cause to life, health or property. Section 5(2) makes the producer or service provider liable also where the person bought the goods from a distributor. Section 5(3) forbids reducing or excluding in advance the liability of the producer or service provider for damage to life, health or property. Section 5(4) makes an agreement contrary to section 5 void.

Section 6(1) defines the producer as a natural or legal person who makes the goods or a component, or presents itself as the producer by putting its name, trade mark or another distinguishing mark on the goods, their packaging or their technical documentation. Section 6(2) treats a person who imports goods in the course of its business to put them into circulation in the European Union (the importer) as equal to the producer for liability.

Section 6(3) makes the distributor or any other person who sold or distributed the goods liable where the producer or importer cannot be identified, unless that person gave timely information on the producer, the importer or its own supplier. Section 7(1) treats goods as defective if the safety that a person is entitled to expect is not guaranteed, taking all circumstances into account.

Section 7(2) treats a service as defective if the safety that a person is entitled to expect from it is not guaranteed, taking all circumstances into account. Section 9 makes two or more persons liable for the same damage jointly and severally. Section 10 determines compensation for damage to life or health under the Civil Law.

Section 11(1) allows a claim for damage to property only if another thing than the defective one was damaged, that thing is intended for personal use or consumption and the injured person used it that way, and the damage exceeded 500 euro when it was done. Section 11(2) puts on the injured person the burden of proving the damage, the defect and the causal link between them.

Section 12 allows the producer or service provider to be freed from liability in full or in part where both the defect and the fault of the injured person or another person caused the damage. Section 13(1) frees the producer from liability if it proves that it did not put the goods into circulation. Section 13(1) also frees the producer if it proves that there is reason to believe the defect arose after the goods were put into circulation.

Section 13(1) also frees the producer if it proves that the goods were not made for sale or other distribution for profit, nor made or distributed in the course of business. Section 13(1) also frees the producer if it proves that the state of science and technology when the goods were put into circulation was not advanced enough to allow the defect to be discovered.

Section 13(1) also frees the producer if it proves that the defect arose because the producer complied with requirements set by the State or a municipality. Section 13(3) frees the maker of a component if it proves that the defect is linked to the design of the thing the component was built into or to the instructions of the producer or service provider.

Section 14(1) requires a claim for compensation to be brought within three years from the day the injured person learned, or had reason to know, of the defect, the damage and the person liable to compensate. Section 14(2) bars a claim once ten years have passed from the day the producer put the goods into circulation or the provider gave the service. The Act was adopted by the Saeima on 20 June 2000 and entered into force on 19 July 2000.