Provisions on Issues concerning the Application of Law in Hearing Cases of Disputes involving Food and Drugs (the “Provisions”) has been issued

Provisions will become effective as of 15 March 2014. Provisions has regulated the guarantee of defective products, claiming for breaching of contract or tort, burden of proof for disputes involving food and drugs.

Principle for the guarantee of defective products

Where any buyer claims rights against producer and seller, because the buyer purchases food or drug in the condition of having known quality problem in a dispute relating to food or drug, the producer and seller still undertake the liabilities. As we all know that food and drugs are special products which are important to health, so the producer and seller shall not sell defective ones by any reason, otherwise, they shall under take the liabilities.

Claiming for breaching of contract or tort

Because of the inconformity of the food or drugs bought by the consumer to related contract, the producer and seller shall bear liability for breach of the contract.

Where a consumer provides evidence to prove that he suffers damages due to eating food or using drug and preliminarily testifies that there is a causality between damages and food eaten or drug used, the producer and seller shall bear liability for tort.

The producer and seller shall bear the burden of proof for the conformity of the food to quality standards. Even though there is the certificate of inspection, where the product is testified as disqualified, the producer and seller shall bear liability.

Order for undertaking different liabilities where the responsible party cannot pay off for all liabilities

Where food or drug has quality problems, the producer and seller have to undertake civil, administrative and criminal liabilities, and they cannot pay off for all liabilities, the consumer shall be entitled to require them to undertake civil liabilities firstly.