Liability for Defective Products Law, 1980

“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.

(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.

(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.

(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).

(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.

(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.

(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.