1. Overview of the Case
A distribution company received supplies of electrical appliances around 2023 and sold them through its own stores. Subsequently, in early 2025, a government agency issued a recall order for the products due to failure to meet safety standards, prompting the distribution company to immediately halt sales and store the entire inventory in its own warehouse. The problem was that the manufacturer of the products was not taking any recovery or damages measures to comply with the recall order. Since the distribution company had no direct contractual relationship with the manufacturer, it was difficult to take independent legal action.
2. Key Issues and Response
The core of this case was how to demand recall compliance and damages from a manufacturer with which there was no direct contractual relationship. Your Legal Team relied on the principle that, where a defect exists in a manufactured product and damage results therefrom, the manufacturer may bear liability for damages even toward a third party under tort liability provided in the Civil Act. Accordingly, through a certified content-certified letter (notarized notice), it formally demanded the following from the manufacturer:
• Prompt recovery of the entire quantity of products subject to recall
• Damages in an amount commensurate with the loss suffered by the distribution company
The content-certified letter clearly set out the legal basis for liability and warned of additional legal measures for further damages should there be no prompt compliance.
3. Result and Significance
The manufacturer, through an official letter, recognized the seriousness of the situation and indicated its position to engage in negotiations regarding product recovery and damages. This case demonstrates that when damage arises from a recall, a manufacturer can be held legally liable even in the absence of a contractual relationship. The distribution company was able to induce a practical resolution before the matter escalated into a legal dispute, thereby preventing further harm.