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[New Law] Reduction or Exemption of Liability, Etc. of Carriers and Aircraft Operators: Partial Amendment to the Commercial Act (Act No. 10696, enforced as of November 24, 2011)

2011.05.23

(1) If a carrier or aircraft operator has proved that a victim was negligent in causing the damage, it is necessary to reduce or exempt the liability of such carrier or aircraft operator refecting the contributory damage. In particular, even in case where a passenger carrier has strict liability, the liability of the carrier and aircraft carrier may be reduced or exempted by applying the contributory damage (Article 898). 
 
(2) In connection with the liability of the carrier, there may be disputes or arguments whether the regulations on the restriction of liability prescribed in Section for Air Transportation in the Commercial Act are applicable to liabilities for illegal acts as well as to contractual liabilities. Thus, it has been specified that the regulations on the liability of air transportation shall be also applicable to liabilities for illegal acts of the carrier, and unless there is any willful misconduct or recognizable reckless act, any employees or agents of the carrier may also cite the defense and restrictions on liability of the carrier (Article 899). 
 
(3) The carrier’s liability to passengers, shippers or consignees shall be terminated after lapse of a two-year period of exclusion, and the extinctive prescription of the cargo carrier’s claims against shippers or consignees shall be two years in consideration of the balance with the regulations on inland and marine transportation (Articles 902 and 919). 
 
(4) If a passenger dies or is injured due to aircraft accident, it is necessary to have the carrier immediately pay in advance a part of the indemnity amount to a victim in order to solve immediate economic difficulties faced by such a victim. Thus, if a passenger dies or is injured, the carrier shall have an obligation to make an advance payment (Article 906). 
 
(5) Download: <a href="/origin/newsletter/33_201106/data/law1.pdf" target="_blank">Partial Amendment to the Commercial Act (Act No. 10696, enforced as of November 24, 2011)</a>

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