In this context, the words 'because of' require that there be a causal connection between the defect and the injury suffered.
Under common law causes of action such as negligence, it is generally necessary to show that there was some negligent aspect of the manufacturer's conduct, which, in fact, on the balance of probabilities caused the loss or damage suffered by the plaintiff. However, the fact that a safety defect exists in the product will go far to ground an inference that there has been the requisite negligent conduct.
Under contract, liability will depend on establishing that the product supplied breached an express or implied term as to the quality or safety of the product. The causation test is the same for breach of contract as it is for negligence.
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