Abstract: Japan had a voluntary products liability system until 1995. The voluntary system allowed consumers to determine whether they wished to pay more for a product that conformed to a strict products liability standard or would rather pay a lower price and assume more risk for a product that met a less stringent standard. Advocates of mandatory products liability maintain that consumers would rarely be compensated for defective products without a legal requirement, but the case of Japan shows how private ordering can result in a more flexible system.