The German drug company Chemie Gruenthal developed and sold Thalidomide that was used to alleviate morning sickness in pregnant woman. Shortly after the drug was sold, between 5000 and 7000 infants were born with malformation of the limbs. Throughput the world, about 10000 cases were reported. Those subjected to thalidomide while in the womb experienced limb deficiencies in a way that the long limbs were either not developed or presented themselves as stumps. Other effects included deformed eyes and hearts, deformed alimentary and urinary tracts, blindness and deafness. What would the company have to prove in order to take advantage of the state of the art defence in s142? Should it be able use the state-of the-defence? If it can use the defence on whom does the loss fall?

How do I answer this? This is related to Consumer Protection/Guarantees.