In this Law –
“Manufacturer” – a person who is engaged, for commercial purposes, in the manufacture or assembly of products, including –
(1) a person who represents himself as the manufacturer of a product by using his name or trade mark or in any other manner;
(2) an importer, for commercial purposes, of a product manufactured abroad;
(3) a supplier of a product whose local manufacturer, or importer, is not identifiable on the face thereof;
“Manufacture” – constructed in accordance with the definition of “Manufacturer“;
“Product” – including any component of a product, the packaging of a product, a product attached to immovable property, and a building;
“Personal damage” – death, illness, injury or a physical, psychological or mental defect.
2. (a) A manufacturer is obligated to compensate any person who incurs personal damage as a result of a defect in a product manufactured by the manufacturer (such person hereinafter referred to as “the injured party”), and it is immaterial whether or not there was fault on part of the manufacturer.
(b) Where damage is caused by a defective component, the manufacturer of the product and the manufacturer of the component are both liable.
(c) The supplier of a product whose local manufacturer, or importer, is not identifiable on the face thereof is exempt from liability under this Law, if, within a reasonable time after the injured party has required him to do so, he furnishes him with particulars from which the name of the manufacturer or importer or of a supplier from whom he purchased the product, and their full business address can be ascertained.
3. (a) A product is defective in one of the following instances:
(1) it is likely to cause personal damage owing to a defect therein;
(2) in the circumstances of the case, for reasons of safety, warnings or directions for handling and use are called for and they have not been provided or are inadequate to the danger involved.
(b) A product shall be presumed to have been defective if the circumstances of the case are more consistent with the conclusion that it was defective than with the conclusion that it was not.
4. (a) In an action under this Law, a manufacturer will have no defence, except in the following instances:
(1) the defect arose after the product left his control; if the manufacturer proves that the particular product concerned underwent reasonable safety checks before leaving his control, the defect will be presumed to have arisen after the product left his control;
(2) in the state of scientific and technological development at the time the product left his control, the manufacturer could not have known that with regard to its design it did not meet reasonable safety standards;
(3) the manufacturer had not intended the product to leave his control and that he took reasonable steps to prevent its leaving his control and to warn the relevant section of the public of the risk involved;
(4) the injured party knew of the defect and the risk involved and voluntarily exposed himself to that risk.
(b) It will not be a defence to an action against a manufacturer that negligence of the injured party contributed to the damage, but if the injured party was grossly negligent, the court may reduce the amount of compensation having regard to the extent of his negligence.
(c) Where the injured party was under twelve years of age –
(1) the defence set out in Subsection (a)(4) is not applicable;
(2) the court will not reduce the compensation under Subsection (b).
5. (a) In calculating compensation under this Law for loss of earnings and loss of earning capacity, income in excess of triple the national wage average according to the data of the Central Bureau of Statistics immediately prior to the determination of the compensation will not be taken into account; where the compensation is exempt from income tax, the injured party’s losses are, for the purposes of the compensation, calculated on the basis of his income after deduction of the income tax leviable thereon at the time the compensation is determined; provided that the reduction of compensation as result of the deduction of tax shall not exceed 25 per cent of the amount of the relevant income.
(b) Compensation under this Law for other than pecuniary damage will not exceed fifty thousand Shekels. The Minister of Justice may, in consultation with the Minister of Finance and with the approval of the Constitution, Legislation and Juridical Committee of the Knesset, increase the amount. The amount shall be linked to the consumer price index from the date this Law comes into force, or from the date of the increase of the amount, as the case may be.
6. (a) The period of limitation of a claim under this Law is three years.
(b) An action under this Law may only be brought within ten years from the end of the year in which the product left the manufacturer’s control.
|7. A stipulation limiting the manufacturer’s liability under this Law is void; this provision will not derogate from the right of the manufacturer to obtain indemnity from another, provided that indemnity is not obtained from a person who came into possession of the product for personal, family or household purposes.||Stipulation Limiting Liability|
|8. Matters relating to damage caused by a defective product which are not specially provided for by this Law are governed, mutatis mutandis, by the provisions of the Tort Ordinance (New Version).||Applicability of the Tort Ordinance|
9. (a) This Law does not apply to –
(1) live farm animals, poultry and fish;
(2) other unprocessed agricultural produce; for this purpose, cleaning, sorting, de-greening, packing, storage and refrigeration is not regarded as processing.
(b) This Law does not apply to damage caused outside Israel.
|Restrictions of Liability|
|10. This Law does not derogate from rights under the Tort Ordinance (New Version) or under any other law.||Saving of Laws|
|11. The Minister of Justice is charged with the implementation of this Law and may, with the approval of the Constitution, Legislation and Juridical Committee of the Knesset, make regulations as to any matter relating to such implementation.||Implementation|
12. This Law shall come into force on the first day of the month following the expiration of six months from the date of its adoption by the Knesset.
Menachem Begin Shmuel Tamir Yitzhak Navon
Prime Minister Minister of Justice President of the State
Passed by the Knesset on the 29th Adar, 5740 (17th March, 1980) and published in Sefer Ha-Chukkim No.964 of the 9th Nisan, 5740 (26th March, 1980), p. 86; the Bill and an Explanatory Note were published in Hatza’ot Chok No.1376 of 5739, p. 30.