Frank Do not apply the rule of law on this but I think someone is pulling your....... What you have described appears to be a staightforward sales contract. As such, you can each apply whatever terms you wish to said contract PROVIDED that both parties agree and that said terms are not beyond the scope of the law applicable. To my knowledge, EU law does not specify contractual consequential liability. The contract itself may stipulate consequential liability. If you did not realise this when you entered into the contract - tough cookies, call your legal beagle. Remember that ignorance is no defence in law. However, if you are relating this to an insurance contract, then watch the small print! If you are being asked to indemnify a customer against your "potentially" faulty manufacture, it is for your insurer to inform you whether he will or will not accept such a clause and, if yes, what it will cost you. IMHO, you cannot be held responsible for consequential losses UNLESS you said so! Hope this helps Regards Graham Naisbitt [log in to unmask] Web: www.concoat.co.uk Concoat Ltd Alasan House, Albany Park CAMBERLEY GU16 7PH Tel: +44 (0) 1276 691100 Fax: +44 (0) 1276 691227 -----Original Message----- From: TechNet [mailto:[log in to unmask]]On Behalf Of Frank Davies Sent: Thursday, December 21, 2000 01:02 To: [log in to unmask] Subject: [TN] Legal question I would like to ask a legal question if possible. We are currently updating our insurance and product liability policy and a legal question has arisen. We have had an opinion from a customer. That even in a situation where a pcb manufacturer has a clear statement in their Terms and Conditions of Sale/Supply, that they will not accept cost liability for stuffed boards in the event of a product failure, under European Law the pcb manufacturer is liable for the cost of the stuffed boards. Could I ask you to get your Legal Department to give us their views on this issues. Thanks in Advance Frank