In the german law there was never an loophole like the described. In the German law the process is like this:
the first 6 Months the seller has to prove the user did something wrong to create the damage, after that it falls back to the customer to prove that the damage was there before he buyed it. The seller has 3 tries to repair the damage or replace the whole product if the customer agrees. If the damage has not been fixed, the customer has the right to return the item and get the money back. If the customer wasn't able to check the product immidiatly(contract over the internet, phone other third party) he has the right to return the product within 14 days without a reason.