product liability law

(the purpose)

Article 1 The purpose of this Act is to protect victims by defining the liability of manufacturers, etc. for compensation when a defect in a product causes injury to a person's life, body, or property, thereby contributing to the improvement of stability in people's lives and the sound development of the national economy.

(definition)

Article 2 In this Act, "manufactured goods" means manufactured or processed movable property.
2. In this Act, "defect" means that a product lacks the safety that should normally be possessed by the product, taking into consideration the characteristics of the product, its normally foreseeable form of use, the time when the manufacturer delivered the product, and other circumstances related to the product.
3. In this Act, "manufacturer, etc." means any of the following persons:

(i) A person who manufactured, processed or imported the product in question as a business (hereinafter referred to simply as the "manufacturer").
(ii) A person who, as the manufacturer of the product, has affixed his/her name, trade name, trademark or other indication (hereinafter referred to as "indication of name, etc.") to the product, or a person who has affixed a name, etc. to the product in a way that may lead to the misunderstanding that he/she is the manufacturer.
(iii) In addition to the persons set forth in the preceding paragraph, any person who has indicated on the product a name, etc. that can be recognized as the substantial manufacturer in light of the form of manufacture, processing, import or sale of the product and other circumstances.

(Product Liability)

Article 3 Manufacturers, etc. shall be liable to compensate for damages to the life, body or property of others resulting from a defect in a product that they manufactured, processed, imported or delivered bearing the name, etc., of paragraph 3, item 2 or 3 of the preceding Article, provided, however, that this does not apply if the damages only occurred to the product in question.

(Reasons for exemption)

Article 4 In the case of the preceding article, the manufacturer, etc. shall not be liable for compensation as provided for in the same article if he proves the following:

1. The scientific or technological knowledge available at the time the manufacturer, etc., delivered the product in question could not have been used to recognize that the product had a defect.
(ii) When the product in question is used as a part or raw material for another product, the defect arises solely as a result of following the design instructions given by the manufacturer of that other product, and the manufacturer is not negligent in causing the defect.

(Limitation on period)

Article 5. The right to claim damages provided for in Article 3 shall be extinguished by prescription if the injured party or their legal representative does not exercise the right within three years from the time when the injured party or their legal representative becomes aware of the damage and the person liable for compensation. The same shall apply if ten years have passed since the manufacturer, etc., delivered the product in question.
2. The period referred to in the latter part of the preceding paragraph shall commence from the time when the damage is caused by a substance that is harmful to human health if accumulated in the body or when symptoms appear after a certain incubation period.

(Application of the Civil Code)

Article 6 The liability of manufacturers, etc. for damages due to defects in manufactured products shall be governed by the provisions of this Act and also by the provisions of the Civil Code (Act No. 89 of 1896).

Supplementary Provisions (Date of Implementation, etc.)

1. This Act shall come into force one year from the date of promulgation, and shall apply to products delivered by manufacturers, etc. after the enforcement of this Act.
(Partial amendment to the Act on Compensation for Nuclear Damage)
2. The Act on Compensation for Nuclear Damage (Act No. 147 of 1961) shall be partially amended as follows:
In Article 4, paragraph 3, change "and the Act on Limitation of Liability of Shipowners, etc. (Act No. 94 of 1975)" to "The Act on Limitation of Liability of Shipowners, etc. (Act No. 94 of 1975) and the Product Liability Act (Act No. 85 of 1994)."