How’s the liability divided In an accident involving a hitchhiking ride?

In daily life, many drivers, out of kindness, are willing to offer “hitchhiking rides” to their friends. However, once a traffic accident occurs and causes casualties, how should the liability be divided?

Let’s analyze the legal liability issues in “gratuitous rides” through the following case.

* Case Review:

In the early morning of March 2, 2022, Peter drove a car and gave David a free ride. While driving on a road section in Nanshan District, Shenzhen, the vehicle hit an irregular obstacle in the road, resulting in a traffic accident. David was injured and suffered a Grade 10 disability.

According to the determination of the Traffic Police Brigade, Peter was fully responsible for the accident. David sued Peter and the highway maintenance center in court, demanding compensation for medical expenses, compensation for mental distress, lost work earnings, etc., totaling 230,000 yuan.

After hearing the case, the People’s Court of Nanshan District, Shenzhen, held that as the driver, Peter should bear the main liability for the accident; the highway maintenance center failed to clean up the obstacle in a timely manner and did not fulfill its management obligations; and David did not fasten his seat belt and was also at fault. Ultimately, the court ruled that Peter should bear 50% of the liability and compensate David 115,000 yuan; the highway maintenance center should bear 20% of the liability and compensate David 46,000 yuan; and He should bear 30% of the liability himself.

Unconvinced by the first – instance judgment, David appealed to the Shenzhen Intermediate People’s Court in October 2022. The second – instance court upheld the first – instance judgment.

* Court Ruling:

The Shenzhen Intermediate People’s Court clearly pointed out in the second – instance trial that Peter’s act of giving David a free ride belonged to “gratuitous ride”, and Peter did not have major faults or intentions such as driving without a license or drunk driving, which was in line with the relevant provisions of the “gratuitous ride” in the Civil Code. Therefore, Peter’s compensation liability should be appropriately reduced. Since David did not fasten his seat belt and was at fault himself, he should also bear certain liability. Eventually, the second – instance court upheld the first – instance judgment.How’s the liability divided In an accident involving a hitchhiking ride?

* Legal Analysis:

The Civil Code clearly defines the “gratuitous ride” rule for the first time. “Gratuitous ride” refers to the act of a driver allowing others to ride in the vehicle for free out of kindness.

The Civil Code, which came into effect on January 1, 2021, clearly defined “gratuitous ride” for the first time. Article 1217 of the Civil Code stipulates: “If a non – commercial motor vehicle causes damage to a gratuitous passenger in a traffic accident and the liability lies with the owner or user of the motor vehicle, the liability for compensation shall be reduced, except where the user of the motor vehicle has intent or gross negligence.”

This provision clarifies the principle of liability division in “gratuitous rides”:

  1. Free ride: Reducing the vehicle owner’s liability

If the vehicle owner gives a free ride to the passenger and has no intent or gross negligence (such as driving without a license or drunk driving) in the accident, the vehicle owner’s liability for compensation can be reduced. This provision aims to encourage acts of kindness and prevent vehicle owners from bearing excessive legal liability for doing good deeds.

  1. Paid ride: The vehicle owner needs to bear more liability

If the passenger pays fees (such as fuel costs, tolls, etc.), it is considered that the vehicle owner has a business purpose, and the vehicle owner should bear more legal liability for the passenger’s personal and property losses.

  1. If the passenger is at fault (such as not fastening the seat belt), the passenger should also bear corresponding liability.

* Lawyer’s Reminder:

Gratuitous ride ≠ exemption from liability, and safe driving is the key.

Although the Civil Code has provisions for reducing liability in “gratuitous rides”, this does not mean that vehicle owners can be completely exempt from liability. If vehicle owners have major faults or illegal acts (such as speeding, running red lights, etc.) during driving, they still need to bear corresponding legal liability.

In addition, passengers should also enhance their safety awareness and take necessary safety precautions, such as fastening seat belts and not disturbing the driver, to minimize the risk of accidents.

Don’t Let Your supplier in China Hold You Hostage

It’s common for overseas companies to choose China for OEM production. But even if negotiations and cooperation with your current supplier go smoothly, you should still have an alternative supplier ready.

Insufficient production capacity, quality issues, unreasonable price hikes by the supplier, or other reasons may make it impossible to continue cooperating with your current supplier, requiring an urgent transfer of production.

However, this obviously requires resolving two closely related key issues: molds and intellectual property (IP). Unclear ownership definitions of these two assets may lead to the supplier refusing to hand over molds when you want to transfer production; or your failure to fully own (100%) the IP required for production may delay the smooth implementation of the production transfer plan.

To avoid being “held hostage” by the supplier, when negotiating and signing contracts with your current supplier, you should consider the possibility of future production transfers and make corresponding provisions:

  1. Clearly stipulate that upon termination of cooperation, the supplier must deliver the molds promptly without setting any obstacles;
  2. Ensure you have complete and undisputed ownership of the product’s IP, and the supplier must not use or claim related rights without authorization. This requires detailed provisions from multiple aspects. Here are some key points for reference:

1) The contract should clearly list the types of IP involved, including but not limited to patents, trademarks, copyrights, and trade secrets. For key IP such as product designs, technical solutions, and brand logos, their ownership must be clearly defined as yours (this may also involve registering these IP rights in China in advance).

2) If the product involves parts co-developed by you and the supplier, clearer provisions must be made. It’s important to note that merely being the commissioning party for development does not guarantee that the developed technology belongs to you.

Article 861 of the Civil Code of the People’s Republic of China clearly stipulates:” For technical secret achievements obtained through commissioned or cooperative development, the methods for using, transferring, and distributing benefits shall be agreed upon by the parties; if there is no agreement or the agreement is unclear, and no determination can be made, all parties shall have the right to use and transfer such achievements before the same technical solution is granted a patent. However, the developer in a commissioned development shall not transfer the research and development results to a third party before delivering them to the commissioning party.”

Don't Let Your supplier in China Hold You Hostage It can be seen that when you commission a supplier for product development, unless the contract clearly stipulates that you own 100% of the developed technology, both you and the supplier have the right to use this technology. That is, even if you transfer production, your original supplier can still use this technology to compete with you.

To ensure full ownership of IP by the commissioning party, the contract should clearly and explicitly state that all IP generated based on the commissioned projects, including but not limited to patents, trademarks, copyrights, and technical secrets, shall belong exclusively to the commissioning party from the beginning. (For more information regarding this, you may check our previous post: The Top Three Tips You Need to Know While Sourcing in China)

We trust this article will serve as a practical guide for your operations in China. Should you encounter specific challenges in drafting manufacturing contracts or need tailored advice on intellectual property protection, our legal team stands ready to assist—feel free to reach out for further guidance.

Employee Fired for Porn at Work Sues, but Court Backs Firm

Mr.Peter, a 41-year-old employee engaged in membership management at a financial institution, was terminated in August 2024 for browsing pornographic websites during working hours. TPeter company cited “serious violation of management regulations” as tPeter reason for terminating his labor contract.

Claiming no such misconduct, Peter applied for labor arbitration, seeking compensation for unlawful dismissal and annual bonuses. The arbitration committee rejected his claims, prompting him to file a lawsuit in court.

During the trial, Peter submitted a photo of the open-environment office to argue that the workspace made it impossible to browse inappropriate content at work, alleging that someone else might have used his computer.

The company countered, “Employees reported extremely slow internet speeds, so our network administrator reviewed backend data and found Peter had massively downloaded and viewed pornographic videos on his work computer.” The company also presented the following evidence:

  1. Notarized browsing and download records from Peter’s work computer, showing extensive access to pornographic websites and video downloads. A “WeChat group chat record” further proved that the timestamps and devices used for sending work files by Peter matched those for accessing pornographic content, ruling out his claim of “third-party operation.”
  2. A video of a conversation between company leaders and Peter, in which Peter admitted to browsing and downloading pornographic materials.Employee Fired for Porn at Work Sues, but Court Backs Firm

The court held that employers may terminate labor contracts if employees seriously violate regulations. Based on verified facts, Peter had signed the company’s Internet Management Regulations,  (for more information regarding internal management regulations, you may check our previously post: Employee Handbook-Important Fact…)which strictly prohibited accessing pornographic content during work hours. The overwhelming evidence—including browsing records on his work device and the admission in the conversation video—confirmed Peter’s violation of both company rules and the labor contract. Thus, the company’s dismissal was lawful, and no compensation was owed.

Regarding the annual performance bonus, the court stated that Peter’s termination for serious misconduct meant Peter failed to meet the requirement of full attendance in 2022 due to his own actions, so his claim lacked factual basis and was dismissed.

Dissatisfied with the first-instance judgment, Peter appealed, but the appellate court upheld the original ruling in its final decision.

Free Perks? Jail Perks!

Recently, I came across an outrageous piece of news. A woman in Shanghai carried out a real – life version of the “free – riding survival guide.” She managed to stay in hotels, eat takeout, and get clothes all for free by exploiting loopholes. She lived it up for a month, but in the end, she was taken away by the police!

This woman’s tactics were “textbook – level.” When staying in hotels, she either claimed there were bugs in the bed or faked an allergic reaction. She even prepared dead crickets in advance as “tools for framing.” When ordering takeout, she would nitpick relentlessly, saying things like the food was burnt or there were foreign objects in it. To keep the peace, merchants had no choice but to issue refunds. When it came to buying clothes, she took full advantage of the seven – day no – questions – asked return policy. She didn’t even remove the price tags, and would return the clothes right after wearing them. But she forgot that what goes around comes around, and her cunning tricks directly set off the “alarm bells” of the law.

According to Article 293 of the Criminal Law of the People’s Republic of China, the following acts constitute the crime of “picking quarrels and provoking troubles” and may be punished with fixed – term imprisonment of not more than five years, criminal detention, or public surveillance: beating others at will; chasing, intercepting, abusing, or intimidating others with circumstances being flagrant; forcibly seizing, willfully damaging, or occupying public or private property with circumstances being serious; or creating disturbances in public places, causing serious disruptions to public order.

Regarding the woman we mentioned at the beginning, she made multiple malicious complaints against merchants, forcing them to “foot the bill” for her accommodation and meals. This seriously disrupted the operations of the merchants, which falls under the category of “forcibly seizing, willfully damaging, or occupying public or private property with circumstances being serious.”

So, it’s important to understand relevant legal regulations and clearly define the boundaries between “legal” and “illegal” behavior.

First of all, A woman in Shanghai carried out a real - life version of the "free - riding survival guide." when dealing with consumer disputes, if you truly encounter problems with product quality or are dissatisfied with the service, you should calmly communicate with the merchants and keep evidence such as chat records and shopping receipts. You can also call 12315 for help from the Consumer Association or file complaints through formal channels. However, do not make malicious reports or repeatedly harass the merchants.

Secondly, when surfing the Internet, you need to watch what you say. Avoid fabricating and spreading false information, or engaging in personal attacks and malicious abuse of others.

Finally, pay attention to your behavior in public places. Don’t deliberately create disturbances, damage public facilities, or arbitrarily stop vehicles and abuse passers – by just to vent your emotions.

In addition, many platforms and merchants do offer preferential policies to attract customers, but these rules are not meant to be used as “tools for freeloading.” Don’t think you can get away with your petty trick. In the era of the Internet, big data records everything! Once you cross the legal line, you may face fines and detention at the least, or even imprisonment at the worst.

 

After Property Sale, Can the New Landlord Wants Me to Move Out in China ?

I recently received a client inquiry with the following details:

I’ve been renting an apartment in Shanghai for the past year, but my landlord just informed me that he sold the property. The new owner says I have to move out in 30 days because they want to move in themselves. My lease still has 8 months left—can they legally do this? What are my rights? I’m really worried about finding a new place so quickly. Please help!

Has this ever happened to you? Below is my responseit might be useful for others in the same spot. 

Thank you for reaching out—I completely understand your concern, and I’m happy to clarify your rights under Chinese law. The short answer is no, the new owner cannot force you out before your lease ends. Below, I’ll explain the legal protections you have and the steps you should take next. 

Key Legal Principle: “Sale Does Not Break Lease” (买卖不破租赁)** 

Chinese law follows the continental legal system, which includes the principle “Kauf bricht nicht Miete”  (German for “sale does not break rent”). This means: 

Your existing lease remains fully valid even after the property is sold.

The new owner must honor the original lease terms until expiration.After Property Sale, Can the New Landlord Wants Me to Move Out in China?

You can find it in relevant Laws & Regulations:

  1. Article 725 of the Civil Code of the PRC:

“If the ownership of a leased property is transferred during the lease term, the lease contract remains in effect.”

This means

1) The new owner cannot evict you before your lease ends.

2) The new landlord has the right to collect rent but cannot terminate the lease early. 

2.Breach of Contract Penalties ( Stipulated in Articles 577-588 of the Civil Code)

If the landlord (old or new) tries to force you out, they are breaching the contract. You are entitled to: 

1) Full refund of your deposit and unused rent (if paid in advance) 

2Possible compensation (If you can provide evidence of additional damages

What Should You Do Now?

1. Politely Inform the New Landlord

1Send them Article 725 and explain that your lease is legally binding. 

2 Offer to pay rent directly to them moving forward. 

2. Secure Your Deposit

1Request written confirmation from the old landlord that your deposit will be transferred to the new owner. 

2If they refuse, demand a refund before the property sale is finalized. 

3. Prepare for Worst-Case Scenarios

   – If the landlord threatens illegal eviction (e.g., cutting utilities), contact: 

     -Local Housing Authority (住房保障和房屋管理局)

     -Police (110 for emergencies)

Note:This advice is based on Chinese law as of 2025. For complex disputes, consult a local attorney.

How to Deal with Workplace PUA Tactics? Know Your Rights When Employers Force Resignation in China

Many companies try to avoid paying severance by using psychological pressure, humiliation, or unreasonable demands to force employees to quit voluntarily. This is a form of “workplace PUA” (Pick-Up Artist tactics applied in employment), where employers manipulate employees into resigning instead of firing them.   

If you are facing such a situation, do not resign impulsively. Instead, understand your legal rights and take strategic steps to protect yourself.

1. Common PUA Tactics Used by Employers

Employers may use the following methods to pressure employees into quitting: 

* Sudden Demotion or Reduced Responsibilities – Assigning meaningless tasks to make work unbearable. 

* Unreasonable Performance Improvement Plans (PIPs) – Setting impossible goals to justify termination. 

* Public Humiliation or Bullying – Constant criticism, exclusion, or verbal abuse. 

* Sudden Pay Cuts or Benefit Reductions – Pressuring employees to leave by cutting wages. 

* Forced Transfers to Remote Locations – Moving employees to inconvenient workplaces.   

If you experience any of these, your employer may be trying to constructively dismiss you without compensation.   

2.Legal Protections Against Forced Resignation

Under the Labor Laws of the PRC, employees have strong protections:   

1) Constructive Dismissal ( Accordingly to Article 38 of Labor Contract Law of PRC)

If an employer: 

– Fails to pay wages on time, 

– Forces unsafe working conditions, 

– Harasses or bullies employees, 

– Unilaterally changes job locations/salaries without agreement, 

The employee can legally resign immediately and demand severance (2N compensation/ double severance, meaning you are entitled to 2N months salary, “N” equals to how many years you have been working with the employer) . Of course, it takes skills to do that. Firstly, you need to collect strong evidence; Secondly, you have to prepare your resignation letter very carefully in an effort to claim for 2N compensation.  How to Deal with Workplace PUA Tactics?
 Know Your Rights When Employers Force Resignation in China

2) Unlawful Termination (According to Article 48 of Labor Contract Law)

If fired without cause, you are entitled to: 

– 2N compensation. 

– Reinstatement if you prefer to keep your job, but we don’t recommend it, as usually it’s not a good experience to stay.

3) Evidence Collection -Which Is Crucial for Legal Claims

To prove workplace PUA, gather: 

–  Emails/chat logs  (showing unreasonable demands or harassment). 

–  Pay slips and contracts  (proving pay cuts or demotions). 

–  Witness statements  (colleagues who observed mistreatment). 

–  HR meeting recordings. 

 3.What Should You Do If Facing PUA?

Step 1: Do NOT Resign Immediately

– Resigning voluntarily means no compensation . 

– Instead,  force the company to fire you if they want you gone. 

Step 2: Document Everything

– Keep records of  unfair treatment, pay cuts, or harassment . 

– If given an unfair PIP,  request clear, measurable objectives  in writing. 

Step 3: Negotiate or File a Complaint

– Talk to HR  (in writing) demanding fair treatment. 

– If ignored,  file a complaint with the local Labor Bureau . 

– If fired unlawfully,  demand 2N compensation via labor arbitration .

4. Conclusion: Stand Your Ground

Many companies use psychological tactics to avoid paying severance.  Do not fall for it.  Instead: 

 Refuse to quit under pressure.

 Collect evidence of mistreatment.

 Use labor laws to claim rightful compensation.

If your employer is pushing you out unfairly,  consult a labor lawyer to explore legal action. Remember:  The law is on your side—use it!  

Additional Resources

Labor Dispute Hotline: 12333 (Ask one of your Chinese friends to call it for you, as few of the staff answer the phone speak English)

Would you like help drafting a formal complaint letter to local labor bureau? Let us know!

Are Entertainment Venues Allowed to Ban Outside Food and Drinks in China?

Many of us have experienced this: when going to a cinema, concert, or theme park, we bring along some water and snacks bought outside. But at the entrance, staff stop us, insisting we can only buy their overpriced food and drinks. A bottle of cola that costs 5 yuan in a supermarket might be sold for 25 yuan inside these venues. So, is this “no outside food or drinks” policy actually legal?  

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The answer is no. China’s Consumer Protection Law safeguards several fundamental rights of consumers, which directly challenge such unreasonable regulations.Are Entertainment Venues Allowed to Ban Outside Food and Drinks in China?

 

Are Entertainment Venues Allowed to Ban Outside Food and Drinks in China?Article 4 of the law entitles consumers to fair trade. When venues force us to buy their overpriced items, they are imposing unfair conditions. Article 9 protects consumers’ right to free choice. Banning outside food restricts our freedom to decide what we consume.

Article 20 requires businesses to have transparent pricing. If a venue doesn’t clearly inform us about the “no outside food” rule before ticket purchase, this rule has no legal effect.

These legal provisions are not just theoretical. In a 2021 case in Shanghai, a cinema was fined 8,000 yuan for confiscating snacks brought in by customers. This ruling clearly shows that such “no outside food” policies are both unfair and illegal.

If the law is clear, why do many venues still enforce this policy? The main reason is profit, of course. Venues can make a huge profit by selling expensive food and drinks. Some venues also claim it’s to “maintain hygiene,” but there’s no law supporting the ban on sealed, packaged outside food. Most consumers are responsible enough to keep the environment clean, so this excuse doesn’t hold up.Are Entertainment Venues Allowed to Ban Outside Food and Drinks in China?

If you encounter a venue banning outside food and drinks, here are some ways to protect your rights.

  1. When stopped at the entrance, record the conversation with staff and remind them that consumers have the legal right to bring in outside food. Ask the venue to show you the written policy. If it wasn’t publicly announced before you bought the ticket, the venue has no right to stop you.
  2. Call 12315—the consumer hotline, to file a complaint. Forced sales can result in a fine of up to 10,000 yuan. If you’re refused entry because of outside food, you can demand a full refund according to Article 53 of the Consumer Protection Law.

However, there are some exceptions. For safety reasons, places like swimming pools may ban glass bottles, and family – friendly venues may restrict alcoholic beverages. At religious or cultural sites, such as temples, certain foods may be restricted out of respect for traditions and beliefs, like banning meat.

The next time you face a “no outside food” rule, don’t give in easily. Know your legal rights and protect your interests. If you’ve had similar experiences, share them in the comments below, and let’s raise awareness about consumer rights together.

Related provision:

Article 9 of  Law of the PRC on the Protection of Rights and Interests of Consumers

  Consumers shall be entitled to autonomous selection of goods or services.

Consumers shall be entitled to autonomous selection of business operators which provide goods or services, types of goods or service methods, and autonomous decision of purchasing or not purchasing any particular type of goods and accepting or not accepting any particular type of services.

Consumers shall, in the exercise of autonomous selection of goods or services, have the right to make comparison, identification and selection.

 

Can the Kid’s Surname to Be Changed after Divorce in China?

When a couple get divorced, usually the kid will live with the dad or mum.  Then question comes:

1. Can the parent change the kid’s name without permission of the other party?

Article 16 of Marriage Law of the PRC stipulates that: children may take the surname of their father or mother. Generally speaking, a baby’s name is determined by the parents, so the change of the child’s name should also be agreed upon by both parents, neither party has the right to change the child’s name without permitted by the other party.

According to the Reply from the Supreme People’s Court’s on the Issue of Changing a Child’s Surname, local public security bureau may reject the request by one of the parents to change the kid’s name without the other party’s permission. Where one party changes the name of a child by concealing the fact of the divorce from the public security bureau and if the other party requests that the original name to be restored, the public security bureau shall restore it.

In conclusion, after divorce, the parent who live with the child has no right to change the surname alone. Even if it is changed, the other party has the right to request the original name to be restored.Can the Kid’s Surname to Be Changed after Divorce?

2.If the parent changed the child’s name without permission of the other party, can the other party refuse to pay alimony?

Article 37 of the Marriage Law of the PRC stipulates that: after divorce, if it’s decided that the child live with one parent, all necessary living and education expenses shall be borne by both parents, and the amount of expenses to be borne and the length of the period shall be agreed upon by the two parties, that’s both parents’ duty and responsibility.

No parent is allowed to refuse to pay these expenses based on the fact that the other party has changed the child’s name without his/her permission. He/she can solve the “name” issue legally, but it is irrelevant to his/her duty as parent to support the child financially.

3. How to change Child’s surnames after divorce?

According to related laws, children can take their father’s/mother’s surname. Any adults have the right to change their own names, however, the change of any juvenile’s names must be decided by both parents.

If either parent wants to change the child’s surname, he/she needs to consult with the child’s biological father/mother to get a written consent. If the child is older than 10 years old, it is also necessary to seek the child’s opinion.

The parent needs to bring both his/her and the child’s household registration book, his/her ID card, and other materials required to the local public security bureau where the household registration is located. Signature of both parties on the application will be required before change of the name is approved.