Chapter
V Product Liability
Article 41 Where a defective product causes any harm to another person, the
manufacturer shall assume the tort liability.
Article 42 Where a product with any defect caused by the fault of the seller
causes any harm to another person, the seller shall assume the tort liability.
Where a seller can neither specify the manufacturer of a defective product nor
specify the supplier of the defective product, the seller shall assume the tort
liability.
Article 43 Where any harm is caused by a defective product, the victim may
require compensation to be made by the manufacturer of the product or the
seller of the product.
If the defect of the product is caused by the manufacturer and the seller has
made the compensation for the defect, the seller shall be entitled to be
reimbursed by the manufacturer.
If the defect of the product is caused by the fault of the seller and the
manufacturer has made the compensation for the defect, the manufacturer shall
be entitled to be reimbursed by the seller.
Article 44 Where any harm is caused to another person by a defective product
and the defect is caused by the fault of a third party such as carrier or
warehouseman, the manufacturer or seller of the product that has paid the
compensation shall be entitled to be reimbursed by the third party.
Article 45 Where the defect of a product endangers the personal or property
safety of another person, the victim shall be entitled to require the
manufacturer or seller to assume the tort liabilities by removing the
obstruction or eliminating the danger.
Article 46 Where any defect of a product is found after the product is put into
circulation, the manufacturer or seller shall take such remedial measures as
warning and recall in a timely manner. The manufacturer or seller who
fails to take remedial measures in a timely manner or take sufficient and
effective measures and has caused any harm shall assume the tort liability.
Article 47 Where a manufacturer or seller knowing any defect of a product
continues to manufacture or sell the product and the defect causes a death or
any serious damage to the health of another person, the victim shall be
entitled to require the corresponding punitive compensation.
Chapter VI Liability for Motor Vehicle Traffic Accident
Article 48 Where a motor vehicle traffic accident causes any harm, the
compensatory liability shall be assumed according to the relevant provisions of
the Road Traffic Safety Law.
Article 49 Where the owner and the user of a motor vehicle are not the same
person due to the relationship of a lease, a borrowing or any other reason and
the liability of a traffic accident is attributed to the motor vehicle, the
insurance company shall make compensation within the liability limit of the
mandatory motor vehicle insurance. The user of the motor vehicle shall make up
any deficit of the compensation; and if the owner of the motor vehicle is at
fault as to the harm, he shall assume the corresponding compensatory liability.
Article 50 Where a motor vehicle has been transferred and delivered from one
party to another through sale or in any other transaction method but the registration
of ownership transfer has not been conducted, if the liability of a traffic
accident is attributed to the motor vehicle, the insurance company shall make
compensation within the liability limit of the mandatory motor vehicle
insurance. The transferee of the motor vehicle shall make up any deficit of the
compensation.
Article 51 Where an illegally assembled motor vehicle or a motor vehicle
reaching the standard of retirement, which has been transferred through sale or
in any other transfer method, causes a traffic accident and a harm, the
transferor and the transferee shall be liable jointly and severally.
Article 52 Where a traffic accident occurs to a motor vehicle that has been
obtained by theft, robbery or snatch and causes a harm, the thief, robber or
snatcher shall assume the compensatory liability. The insurance company that
makes advances for rescue expenses within the liability limit of the mandatory
motor vehicle insurance shall be entitled to be reimbursed by the person liable
for the traffic accident.
Article 53 Where the driver of a motor vehicle flees after a traffic accident
occurs to the motor vehicle, if the motor vehicle is covered by the mandatory
insurance, the insurance company shall make compensation within the liability
limit of the mandatory motor vehicle insurance; or if the motor vehicle cannot
be identified or is not covered by the mandatory insurance, and the expenses
for the death of or personal injury to the victim, such as rescue and funeral
fees, need to be paid, the advances shall be made out of the Social Assistance
Fund for Road Traffic Accidents. After advances are made out of the Social
Assistance Fund for Road Traffic Accidents, the governing body of the fund
shall be entitled to be reimbursed by the person liable for the traffic
accident.
