EXAM - ECON 408 - Torts - Mia .docx

By using strict liability for such cases it could

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full responsibilities. By using strict liability for such cases, it could discourage reckless behavior and needless loss by forcing the potential defendants to take every possible precaution. Besides, when strict liability is used it could simplify the case and help expedite court decisions. b) Now suppose that both the (potential) victim and (potential) injurer can take some level of precaution that will decrease the probability of injury. Choosing among No Liability, Strict Liability, or Negligence, explain which liability rule would provide incentives for the socially efficient level of precaution, and why . In your explanation, start with the injurer and describe his decision-making process, then explain from the perspective of the victim. If the victim and the injurer can both take some level of precaution that will decrease the probability of injury, we have to use negligence to provide incentives for the socially efficient level of precaution. Under negligence rule, plaintiff must prove harm, causation, and breach of duty. From the injurer’s perspectives, his or her act or failure to act must cause the harm in order for negligent tort to come to effect. The injurer’s act or fail to act must not only be a cause – in – fact, it must be the proximate cause of the victim’s harm. In this case, the victim could have taken some precaution to prevent the incident/accident, but he/she did not do that and therefore the incident/accident took place. We could use the production functions to find the cause part of the tort. Second, the injurer’s act or failure to act must demonstrate a breach of duty owned to the injured. The injurer is said to be “at fault” or to have been negligent and he or she has to satisfy the applicable “standard of care”. From the victim’s perspectives, he/she has the burden of prove that he/she is harmed/hurt and the injurer’s act or failure to act must cause the harm. That being said, he/she must prove harm, causation and breach of duty under negligence rule. Then we have use variable x indicating the level of precaution and x~ indicating the legal standard to find out the level of fault from both parties. The actor is not at fault if x = or > x~, the actor is at fault if x < x~. The victim knows that under a negligence rule, the injurer will take Page 3 of 9
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NAME: Mia Ha Student #: 1840544 precaution x*; and therefore, if an accident occurs, the injurer will not be liable. So now the victim is facing the full cost of any accident which occurs; which means that the victim also takes the efficient level of precaution. 5. (3 points total) What does it mean to take the “efficient level of care”? Please define and describe how this is determined. (2 points). Give at least one reason why, in reality, determining the efficient level may be difficult to do precisely. (1 point) Taking the efficient level of care means the level of precaution, action that the victim has to take under negligence rule since he or she knows the injurer has met their duty. Under negligence rule there are different level of precaution to determine the fault. There are
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