International Product Liability, The Issue Of Compensation Research

Compensation is the core of international products liability system. As the rapid development of international economic contact and due to the lack of the uniform international legislation for products liability, the problem of compensation of international products liability becomes increasingly projecting. In this dissertation, the problem of compensation of international products liability is discussed in four aspects and suggestions to reconstruct China's foreign-related products liability compensation system are brought forward.Part I: The general principles for compensation of international products liability include principle of complete indemnity, principle of set-off of profit and loss, principle of punitive damages and principle of limitative damages.Part II: The subjects of compensation duty consist of the producer (manufacturer), the seller and other subjects. Among the above subjects, the producer (manufacturer) is the primary obligor. When a victim initiates an action he should have the right to choose which of the subjects to be the defendant. In international product liability, there is a type of special subject, the importer. An importer is economically a seller rather than a producer and he is imposed the duty of a producer (manufacturer).Part HI: The part concerning the extent of compensation is the quintessential part of the dissertation. Three controversial problems are stressed in the part: punitive damages, purely economic loss and mental compensation. Punitive damages system is effective to punish inflictors and prevent product liability accident from happening. But it is also restraining to the development of economy and science and technology. So limits to scope of application and to compensation amount should be employed to balance the positive and negative influence of punitive damages. Compensation for purely economic loss should be based on tort liability according to the principle of protecting consumer's interest. As regards to mental damage, compensation should be imposed and it is a must to stick to the doctrine of discretional evaluation of evidence.Part IV: The plea of compensation of product liability can be divided into three types: plea to exclude compensation obligations, plea to eliminate compensation obligations and other pleas.Part V: On the basis of analysis of international product liability compensation itself, suggestions to reconstruct China's foreign-related products liability compensation system are brought forward. Firstly, the scope of obligatory subject of product liability compensation should be made clear. Secondly, the plea system of compensation should be perfected. Thirdly, punitive damages system accordant with China's conditions should be established. Fourthly, mental compensation system should be added into the legislation of product liability compensation.