Journal of Korean Society of Industrial and Systems Engineering
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v.39
no.2
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pp.11-18
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2016
Product liability (PL), which began enforcement in 2002, refers to the legal responsibility of the manufacturers or sellers (wholesales or retailers) for the property damage or bodily harm caused by their product. With a strong enforcement of the Product Liability (PL) Act, companies are required to structure and operate a response system to defend or prevent product accidents efficiently, but small and medium enterprises (SMEs) are unable to respond more aggressively due to limitation of management resources. In this manner, it is important to develop response strategies for SMEs to efficiently cope with the PL Act. In this paper, the PEST (Political, Economic, Social, and Technological) analysis is performed to reveal the impact of the PL Act on SMEs in macro-economic point of view. To formulate SME's PL response strategy, SWOT analysis is performed to categorize each factors from PEST analysis and AHP is applied to identify the intensities of SWOT factors. The prioritized SWOT factor, results of PEST-SWOT-AHP analysis, are used to formulate SME's PL response strategies. The study results are briefly summarized as follows. To reduce product defects, it is necessary for SMEs to formulate PL response strategies for each phase of the product life cycle by continuously collecting and analyzing PL cases in the same industry or for similar products. In addition, SMEs should invest more technological effort to ensure product safety. Further, SMEs should spread PL awareness to all staff members by training internal PL experts. Moreover, a SME should enroll in PL insurance and spread this information to its customers so that they become aware that the company is proactively conforming to the PL law.
In 1976, the Dalkon Shield-intrauterine device injured several thousand women in U.S.A. which caused the changes of medical deivce regulation. The Medical Device Regulation Act or Medical Device Amendments of 1976 (MDA) was introduce. As part of the process of regulating medical devices, the MDA divides medical devices into three categories. The class II, and III devices which have moderate harm or more can use the section 510 (k), premarket notification process if the manufacturer can establish that its device is "substantially equivalent" to a device that was marketed before 1976. In 21 U.S.C. ${\S}$ 360k(a), MDA introduced a provision which expressly preempts competing state laws or regulations. After that, the judicial debates had began over the proper interpretation and application of Section 360(k) In February 2008, the U.S. Supreme Court ruled in Riegel v. Medtronic that manufacturer approved by the Food and Drug Administration (FDA)'s pre-market approval process are preempted from liability, even when the devices have defective design or lack of labeling. But the Supreme Court ruled in Medtronic Inc. v. Lora Lohr that the manufactures which use the section 510 (k) process cannot be preempted and in Bausch v. Stryker Corp. that manufactures which violated the CGMP standard are also liable to the damage of patient at the state courts. In 2009, the Supreme Court ruled in Wyeth v. Levine that patients harmed by prescription drugs can claim damages in state courts. This may cause a double standard between prescription drugs and medical devices. FDA Preemption is the legal theory in the United States that exempts product manufacturers from tort claims regarding Food and Drug Administration approved products. FDA Preemption has been a highly contentious issue. In general, consumer groups are against it while the FDA and pharmaceutical manufacturers are in favor of it. This issues also influences the theory of product liability of U.S.A. Complete immunity preemption is an issue need to be more declared.
It can determine the outcome of the lawsuit whether or not there is a causality between the medical malpractice of a physician and the patient's injury when the patient is filing a lawsuit against the physician in order to pursue civil liability for a medical accident. In medical malpractice lawsuits, it is not easy to judge causality between different civil cases because of the special nature of medical care. Also, information such as medical records is concentrated on doctors and the medical knowledge of the patient is relatively insufficient compared with the doctor. Therefore, it is recognized through medical malpractice lawsuits that the burden of proof of the causality burdened by the plaintiff patient is relaxed. In this paper, I examine the legal theory on how to recognize causality in medical civil liability and then concern the attitude of the case in Korea, which is divided into the types of the causality - such as the case of general medical practice, explanation duty, no causality with medical malpractice.
Discussions about unfavorable acts of corporations in managing activities include many legal considerations. In general cases, first of all, legality of the given acts should be verified. If they are judged to be illegal in their procedures, whether it is possible to assert nullification for the acts by the corporation law or not should be examined. Next, the claim for damages against the actors should be considered. After that, whether the actors have criminal liability or not should be discussed. In this case, it is difficult and complicated to judge what clauses of the Criminal Code in the substantive law apply to the unfavorable acts. when the director's business judgement in the long run causes the corporation to be unprofitable or suffer damage, the Question of whether criminal punishment can be imposed on the director is a very important one requiring careful consideration.
In 2007, KSLV(Korea Small Launching Vehicle) that we made at Goheung National Space Center is going to launch and promotes of our space exploration systematically and 'Space Exploration Promotion Act' was enter into force. 'Space Exploration Promotion Act' article 3, section 1, as is prescribing "Korean government keeps the space treaties contracted with other countries and international organizations and pursues after peaceful uses of outer space." The representative international treaties are Outer Space Treaty (1967) and Liability Convention (1972) etc. In Liability convention article 2, "A launching State shall be absolutely liable to pay compensation for damage caused by its space object on the surface of the earth or to aircraft in flight. The important content of the art. 2 is the responsible entity is the 'State' not the 'Company'. According by Korean Space Exploration Act art. 14, person who launches space objects according to art. 8 and art. 11 must bear the liability for damages owing to space accidents of the space objects. Could Korean government apply the Products Liability Act which is enter into force from July 1, 2002 to space launching person? And what is the contact type between Korea Aerospace Research Institute(KARl) and Russia manufacturer. Is that a Co-Development contract or Licence Product contract? And there is no exemption clause to waive the Russia manufacturer's liability which we could find it from other similar contract condition. If there is no exemption clause to the Russia manufacturer, could we apply the Korean Products Liability Act to Russia one? The most important legal point is whether we could apply the Korean Products Liability Act to the main component company. According by the art. 17 of the contract between KARl and the company, KARl already apply the Products Liability Act to the main component company. For reference, we need to examine the Appalachian Insurance co. v. McDonnell Douglas case, this case is that long distance electricity communication satellite of Western Union Telegraph company possessions fails on track entry. In Western Union's insurance company supplied to Western Union with insurance of $ 105 millions, which has the satellite regard as entirely damage. Five insurance companies -Appalachian insurance company, Commonwealth insurance company, Industrial Indemnity, Mutual Marine Office, Northbrook Excess & Surplus insurance company- went to court against McDonnell Douglases, Morton Thiokol and Hitco company to inquire for fault and strict liability of product. By the Appalachian Insurance co. v. McDonnell Douglas case, KARl should waiver the main component's product liability burden. And we could study the possibility of the adapt 'Government Contractor Defense' theory to the main component company.
The accident of the midair collision, passengers' falling or goods' dropping occurs or supersonic aircraft make a sonic boom during their conveying passengers or goods to the destination. The accident in transmit damages the their parties on the surface or their properties. In these cases, the third parties who were harmed to their lives or properties have the right to claim damages against the air carrier who caused them. These matters have become one of the important things since aircraft conveyed passengers and goods. Therefore, it is a great concern to settle these matters by law. But the Safety of the present aircraft has been much increased and the aircraft have become larger in size. Its flight altitude became higher than before. So the relationship of the aircraft to the third parties is much different from that of the earlier aircraft. The air transport is now indispensable to our life. It is not so easy to control these matters. In the early part of 20th century, when the third parties suffered the damage, many European countries made laws on the basis of the principle of liability without fault. But each country had a variety of its own law, and different kinds of difficulties have been brought about. Accordingly, the Rome Convention on Surface Damage (1933, 1952, 1978) has been made and revised. In spite of being revised, it contains many problems, and is not carried into effect world-wide. On the other hand, there are no regulations about the compensation of the third parties damaged in Korean existing laws. In case the damage is brought about to them, it is obviously true that the settlement of the liability of compensation for damage should be made by the general principle on the tort in domestic laws. At this point, it is urgent that we make a special law though the domestic legislation as a preliminary measure before we sign the international convention to save third damaged. It is desirable that we should, for the responsibility of the air carriage for the demage of the third parties on the surface, bring in the theory of the absolute liability in view of the legislation of many conutries. As the aircraft fly in the sky, their flight always contains some danger. It is very difficult to prove the fault, and the operator should suffer the principle of liability without fault or the similiar one. In case the liability without fault will be imposed upon the operator for the damage of the third parties, it is necessary to bring in the liability protection system for the protection and up upbringing of the air carriage. The Burden of danger of the air carriage will be reduced by introducing the system. A domestic legislation measure should be necessarily taken as soon as possible as a legal security measure on these matters.
Recently, risk of space accident possibility increased in according to commercial space activity and space debris. It failed launch satellite second times in South Korea. Therefore was discussed on liability and insurance issue. Generally, discuss of space insurance be divided two type. Firstly, space insurance relevant to launching satellite and in-orbit. Satellite Launch Insurance and In-Orbit Insurance by the Satellite Operator Secondly, space insurance relevant to Third Party Liability. The former is to protect owner of satellite and operator. The latter is to liable and indemnify owner of satellite and operator's liability. US, UK, France, Russia, South Korea forced to buy space insurance following to domestic law. This is a brief overview of risk allocation and insurance practices in the commercial space transportation industry today. We begin with traditional space transportation, i.e., commercial satellite launches. This is a mature industry with known players. Industry practices have developed and legislation has been adopted in the U.S. and other countries over the past decades to address liability and insurance issues. The primary focus here is on U.S. law, but the discussion of industry practice applies more generally. We then move on to a more exotic form of space transportation: Commercial human space flight. Several private companies are now signing up space tourists for commercial suborbital human space flight, advertised to become available in the near future. The United States amended its launch legislation in 2004 to promote commercial human space flight. But questions remain as to how this new industry will respond to the risk allocation regime established by the U.S. legislation, which leaves both the space flight operator and space tourist exposed to risk and potential liability. As a general proposition, state statutes and contractual waivers alone cannot be relied upon to provide adequate liability protection, and insurance will be required. Federally mandated contractual waivers by space flight participants or liability caps would be helpful to complement insurance solutions. Eventually, as the industry matures, such practices could be extended to an international legal regime. For all the issues mentioned above, I have studied the existing international treaties and several country's domestic law to the space by referring U.S's Commercial Space Launch Amendment Act of 2004 and concluded that uniform legal regime to govern these insurance issues should be established domestically and internationally in the future.
This study is a preceding research designed to deduct an institutional supplementary measure that minimizes any inevitable side effects from the improvement of artificial intelligence (AI) technology, which is the core element of the Fourth Industrial Revolution. In this specific case in which the Robo-Advisor, the representative type of AI-applied technology, was hacked by a third party and ended up manipulating prices, the study was intended to examine the responsibility relationship of the current legal framework. Although the current legal framework strictly prohibits acts such as hacking and manipulation, it was confirmed that if the Robo-Advisor management firm acts in compliance with protection measures regarding hacking, the firm is free from any legal liabilities and there is insufficient legal protection available for ordinary investors with grand-scale damage from price manipulation Based on this study, further studies are needed to derive more institutional supplementary measures on overcoming these problems.
Article 3 Paragraph 1 of the Warsaw Convention regulates the requirements of passenger tickets, Article 4 Paragraph 3, the requirements of baggage tickets, Article 8, the requirements of airway bills. In this article the writer has discussed the legal nature of the documents of air carriage, such as air waybills, passenger tickets and baggage checks. Further, the writer has also discussed several issues relating to the use of the documents of air carriage under the Warsaw Convention. Article 3 Paragraph 2, as well as Article 4 Paragraph 4 and 9 provides that the carrier shall not be entitled to avail himself of the provisions of the Convention which evade or limit his liability. In particular, the Montreal Agreement of 1966 provides that the notification on the carrier's liability in passenger ticket should be printed in more than 10 point type size with contrasting ink colors. However, another question is whether the carrier shall not be entitled to avail himself of the liability limit under the Convention in case the type size is below 10 points. The Convention does not specify the type size of certain parts in passenger tickets and only provides that the carrier shall not be entitled to avail himself of liability limit, when a carrier fails to deliver the ticket to passenger. However, since the delivery of passenger tickets is to provide an opportunity for passengers to recognize the liability limit under the Convention and to map out a subsequent measures, the carrier who fails to give this opportunity shall not be entitled to avail himself of the liability limit under the Convention. But some decisions argue that when the notice on the carrier's liability limit is presented in a fine print in a hardly noticeable place, the carrier shall not be entitled to avail himself under the Convention. Meanwhile, most decisions declare that regardless of the type size, the carrier is entitled to avail himself of liability limit of the provisions of the Convention. The reason is that neither the Warsaw Convention nor the Montreal Agreement stipulate that the carrier is deprived from the right to avail himself of liability limit of the provisions of the Convention when violating the notice requirement. In particular, the main objective of the Montreal Agreement is not on the notice of liability limit but on the increase of it. The latest decisons also maintain the same view. This issue seems to have beeen settled on the occasion of Elisa Chan, et al. vs. Korean Airlines Ltd. The U.S. Supreme Court held that the type size of passenger ticket can not be a target of controversy since it is not required by law, after a cautious interpretation of the Warsaw Convention and the Montreal Agreement highlighting the fact that no grounds for that are found both in the Warsaw Convention and the Montreal Agreement. Now the issue of type size can hardly become any grounds for the carrier not to exclude himself from the liability limit. In this regard, any challenge to raise issue on type size seems to be defeated. The same issue can be raised in both airway bills and baggage tickets. But this argument can be raised only to the tranportation where the original Convention is applied. This creates no problem under the Convention revised by the Hague Protocol, because the Hague Protocol does not require any information on weight, bulk, size, and number of cargo or baggage. The problem here is whether the carrier is entitled to avail himself of the liability limit of the provisions of the Convention when no information on number or weight of the consigned packages is available in accordance with Article 4 of the Convention. Currently the majority of decisions show positive stance on this. The carrier is entitled to avail himself of the liability limit of the provisions of the Convention when the requirement of information on number and weight of consigned packages is skipped, because these requirements are too technical and insubstancial. However some decisions declare just the opposite. They hold that the provisions of the Convention Article 4 is clear, and their meaning and effect should be imposed on it literally and that it is neither unjust nor too technical for a carrier to meet the minimum requirement prescribed in the Convention. Up to now, no decisions by the U.S. Supreme Court on this issue is available.
Journal of the Korea Society of Computer and Information
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v.23
no.11
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pp.167-173
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2018
The Korean government announced its goal of commercializing autonomous vehicle by year 2020. With such changes, it is expecting to decrease car accident mortality by half. To commercialize autonomous car, not only worries on safety of autonomous vehicle has to be solved but at the same time, institutional system has to be clear to distinguish legal responsibilities in case of accident. This paper will present the legal improvement direction of the introduction of autonomous vehicles as follows. First, it is necessary to re-establish concept of 'driver' institutionally. Second, it is appropriate to focus on Level 3 autonomous vehicle which is about to be commercialized in year 2020 and organize legal responsibility. Third, we should have a clear understanding on how level 3 autonomous vehicle will be commercialized in the future. Fourth, it is necessary to revise The Traffic Law, Act on Special Cases concerning the Settlement of Traffic Accident, and Automobile Accident Compensation Security Law in line with level 3 autonomous vehicle. Fifth, it is necessary to review present car insurance system. Sixth, present Product Liability Law is limited to movable products (Article 2), however, it is necessary to include intangible product which is software. Seventh, we should review on making special law related to autonomous car including civil, criminal, administrative, and insurance perspectives.
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