Limit liability for defective ag products
Limit liability for defective ag products
FARMERS immunity from damage claims resulting from defective primary agricultural products – including GMOs – will end on Dec 4 this year.
This may encourage producers to convert to limited liability companies to avoid the risk of claims under the Consumer Protection Act 1987.
The Act covers defects that may not have been obvious at the time of sale, but UK farmers have been excluded from such liability for primary agricultural products. However, many European Union states do not allow this exemption, and the EU now requires all member states to abolish the agricultural opt-out.
"Genetically-modified crops would clearly be caught by this legislation, and producers may find themselves in difficulties even if they have taken all necessary precautions," comments Robert Swift, head of Wilsons farms and estates department.
"I wonder how long farmers will consider it appropriate to farm as sole traders or in partnership, if this exposes all their assets to claims under the Consumer protection Act. One suspects this is a persuasive argument for creating a farming company and taking the benefits of limited liability." *