All appeals by the plaintiffs are dismissed.

The costs of appeal are assessed against the plaintiffs.

3. The indication of parties to the judgment of the first instance.

1. Basic facts

A. On December 24, 2009, the Defendant imported GH vehicle (hereinafter “instant vehicle”) and sold the said vehicle to a trading business entity in the name of the Plaintiff on March 18, 2013.

B. On April 17, 2013, the Plaintiffs jointly purchased the instant vehicle from the said seller and acquired each ownership of the Plaintiff A’s 51% shares, and Plaintiff B’s 49% shares.

(c)

On March 21, 2018, the Plaintiffs sold the instant vehicle to I on or around March 21, 2018, and the said vehicle was scrapped on or around October 31, 2018.

[Grounds for Recognition] Uncontentious Facts, Gap evidence No. 1, Eul evidence No. 5, and the purport of the whole pleadings

2. The Plaintiffs asserted that the instant vehicle damaged the engine to the extent that it is impossible to repair the vehicle on January 28, 2018, and the Plaintiffs suffered damages equivalent to KRW 9.5 million by selling the said vehicle at an inevitable low price.

However, the Defendant did not notify the Plaintiffs of the defect corrective measures (hereinafter “LA”) in advance, and the content of the call was also related to damage to the engine.

Therefore, as a liability for warranty or liability for damages to the plaintiffs, the defendant is obligated to pay 9.5 million won for damages suffered by the plaintiffs due to the design and manufacturing defects of the vehicle of this case and delayed damages.

3. Determination

A. Having a contractual relationship between the plaintiffs and the defendant, as seen in the above 1. A, B, as seen in the above 1.A, there is priority in warranty liability.

Therefore, the plaintiffs cannot be seen as liable for warranty against the defendant.

B. Next, review the claim for damages.

This is divided into product liability under the Product Liability Act and civil liability.

1) First of all, the instant vehicle is a movable property manufactured or processed under the Product Liability Act and constitutes a product (Article 2 subparag. 1 of the Product Liability Act), and the Defendant directly manufactures the vehicle.