Product Liability Law And Economics Analysis

Economics of Law is the combination of economics and law, which regards efficiency as theessential legal value goal and criterion, and studies the legal theory and concrete legal questions byvirtue of the economic findings and ways related. In the meanwhile legal study is absolutelydifferent from economic study both in theory and in technologic foundation. This paper focuses oneconomic application to legal questions by economically analyzing the product responsibility.According the law about the product responsibility limits understanding, the productresponsibility production inevitably can bring about the loss cost of all benefits correlation. Howto consummate the product responsibility law system, reduce the product accident caused bynegligence, protect the bilateral litigants' benefit about product responsibility, save the social costin order to increase society income? This is the economic research question. This paper utilizesthe microeconomics and the law economic research technique, analyzes such legal questions asthe principle to judge the product responsibility as well as the economic result of the differentprinciple, the condition and standard about compensatory and the punitive damages, theproducer's defensive reason, the responsibilities produced simultaneously due to the breach offaith and product responsibility, the impact on product supply and demand because of dealingwith the product responsibility. In the meantime, we try to supplement the juristic theory with theeconomic ways. This paper's content includes following several aspects: First analyzes theprinciple to judge the product responsibility from the law economic angle, and then concretelyanalyzes the product responsibility with the law economic tools, at last draws some relatedconclusions.