Which case established the "neighbour principle" in consumer law?

Prepare for the New Zealand Consumer Law Exam. Enhance your knowledge with multiple choice questions, detailed explanations, and study resources. Get ready to ace your test!

The "neighbour principle" was established in the landmark case of Donoghue v Stevenson, which is foundational in tort law and has implications in consumer law as well. This case revolves around the notion of duty of care that manufacturers owe to consumers. It arose from a situation where a woman became ill after consuming a ginger beer that contained a snail, which she did not see due to the opaque nature of the bottle. The court ruled that the manufacturer had a duty to ensure that their product was safe for consumers.

The significance of the "neighbour principle" is that it extends the responsibility of care beyond direct transactions to any party who may reasonably be affected by one’s actions. This principle has influenced consumer law by establishing the idea that businesses have a duty to protect consumers, which aligns with the protections provided in legislation such as the Consumer Guarantees Act 1993 and the Fair Trading Act 1986.

The other responses reflect different legal contexts; for instance, Gillespie Brothers Ltd v Roy Bowles Transport Ltd pertains more to transport law and liability than to consumer duties. The Consumer Guarantees Act 1993 and the Fair Trading Act 1986 are both legislative measures aimed at consumer protection, but they do not establish foundational legal principles like

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