Imputation Principle of Product Liability in the Perspective of Law and Economics: Concurrence of Contract Law and Tort Law

Abstract

The information asymmetry of market players leads to product safety becoming a regulatory issue. From the perspective of law and economics, the consumer principle requires manufacturers to balance investment in product safety with consumer insurance benefits. The producer principle requires producers to face the conflict between product safety improvements and product innovation and to balance the two. Product liability under Chinese law tends to favour the former. Singh's economic analysis model of effective product liability rules (2001) demonstrates the relative superiority of strict liability, but it is not perfect. It is hoped that, by analysis from the perspective of law and economics, the legal regime relating to product liability in China will move towards effective improvements that balance the interests of the individual and those of society.