Discussion of Traffic Accident Liability: Economic Analysis

The newly issued Road Traffic Safety Law will take effect on May 1, 2004. Reflecting the human-centered concept, article 76 stipulates that motorists should be held responsible for any traffic accident with pedestrians, even if they are not at fault. Through a legal-economic analysis of the rule for the determination of traffic accident liability, the thesis demonstrates that the both pedestrians' right and motorists' right should be taken care of. In addition, this paper maintains that it is the negligence liability rule, not the strict liability rule that can make the social welfare maximum.