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§ Liability Resulting From Breach of Contract: the Court of the place where the dependant has his domicile or where the contract performed; or in accordance with the choice of parties agreed in the contract.
(h). Applicable Law
§ Tort: the law of the place where the act committed. If both parties are citizens of a same country or reside in a same country, the law of their own country or the country they reside in is the applicable law.
§ Breach of Contract: the law of the place where the parties chose as a forum, or in absence of such choice, the law of the country to which the contract is most closely connected.
(i). Remedies
§ Medical costs
§ Loss of injured persons income
§ Invalidity Benefit / Compensation for loss of labor ability
§ In the event of death, funeral expenses, as well as widow and orphan pensions
§ Moral compensations
III. Criminal Liability
§ Companies: could be sentenced fines when it is convicted.
§ Nature Persons: could be sentenced imprisonment up to whole life, and for most serious crimes, the punishment could be death execution.
§ Employees in Company: could be convicted if they were proven being liable for the damage.
§ Criminal Acts: producing/selling substandard products; misrepresenting substandard products as high-quality products; passing off; producing fake medicines; using toxic additives in food; etc. However, serious damage is an element in most crimes.
3. Ways for a US Manufacturer to limit its Exposure to Product Liability Claims in China
3.1. Corporate Structure
a. WFOE (wholly foreign owned enterprise):
1. Product quality management and control can be operated independently.
2. Need time to familiar the relevant national and local administrative structures.
3. Subjects to Industrial Guidance for the foreign investment in China and requirements of entry into specific industrial sectors.
b. JV (Joint Venture Enterprise):
1. Lack of independence
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