LEGAL UPDATE: Impact on Companies of the PRC Tort Liability Law - November 2010

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The PRC Tort Liability Law (the “Tort Law”) finally came into effect on 1st July 2010, following several years of debate. It is considered to have a significant role in developing the legal framework for the protection of civil rights in China and is designed to consolidate the existing rules and regulations.

Areas covered by the Tort Law include liability for environmental pollution, collapsed buildings, defective products, harm caused during “performance of work duties” as well as the requirements and rules governing causation and liability. Those held to be liable under the law, may be required to, inter alia, compensate their victim for damage incurred or restore them to their pre-injury position, if possible stop the infringement of another’s rights or take steps to remove the danger, eliminate negative effects of their infringing act or make formal apologies to the victim concerned.

This update will highlight certain areas from the Tort Law which are likely to impact on companies doing business in China.

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