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Journal: International scientific journal "Internauka." Series: "Juridical Sciences" (Vol.1, No. 19)

Publication Date:

Authors : ;

Page : 49-55

Keywords : product liability; economic analysis; full compensation protection model; defect; products;

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This article focuses on economic analysis of product liability. It has been substantiated that the economic analysis of a particular model of legal regulation is very important because it allows to predict the consequences of its implementation and to determine its effectiveness. It has been determined that the institute of product liability in Ukraine is based on the model of "full compensation protection", since the essence of this responsibility is solely obliged to compensate for the damage caused by the defect of the products. Critical considerations of foreign scientists in the field of economic analysis of the law concerning the economic efficiency of product liability have been analyzed, as a manifestation of the model of "full compensation protection". A number of its major disadvantages was highlighted in terms of economic analysis, among which should be noted the following: – Not every person suffered from product defect will seize the court; – It is not always possible to prove incurred damages in court, which will lead to an under-compensation for the damage; – Manufacturers of products can take into account potential losses in the form of compensation to victims of defective products, court costs and include them to the cost of their products through statistical and analytical data. Thus, the entire property burden will be laid on the products buyers themselves. It has been concluded that the concept of absolute innocent product liability is by far the most optimal, despite all its disadvantages. At the same time, it has been mentioned that, an additional mechanism for civil rights protection would be appropriate, for example, as the compulsory insurance of liability of product manufacturers and the extended voluntary insurance of consumers' potential losses.

Last modified: 2021-03-16 22:33:59