US vs. Carroll Towing - At certain times it is imperative...

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Econ 404 20:19:04 rmf34 US vs. Carroll Towing Judge(s): L. Hand – Circuit Judge Court: Circuit Court of Appeals – 2 nd Circuit (Location, Date): January, 1947. Plaintiff : United States of America et al. Case Summary : A barge broke loose; the bargee (man who’s on the barge) was away for 21 hours without reason during a busy time when barges are being drilled out of the ice. It was not beyond reasonable expectation that with such a busy time in the harbor, the drilling work may not be done with full care. Judge Hands comes up with a formula that is a cost benefit analysis derivative.
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Unformatted text preview: At certain times it is imperative that the bargee is on the barge. At others it is relatively safe and he can leave. Defense : Carroll Towing Company Inc., et al. Verdict : The bargee should have been on the barge unless he had an excuse for his absence which he did not. Law and Economics Notes : Probability = P Injury = L Burden = B Liability depends on if: < B P L Burden depends on whether B is less than P x L. This is cost benefit analysis. It looks at externalities and probabilities of incident....
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This note was uploaded on 12/11/2007 for the course ECON 4040 taught by Professor Hay during the Fall '07 term at Cornell University (Engineering School).

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