What is an economic analysis of Tort Law? What are some of the assumption developed when analyzing Tort Law? Give examples.
Anonymous Changed status to publish October 5, 2019
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The economic analysis of tort law is said to acquire prominence in 1970. Tort law allows the victim to seek remedy from the person held guilty for it. So, the person held liable is said to have liability rather than partnership. So the economic view of Tort law is to minimize the total cost of incidence and cost of avoiding them, thus referred to as optimal deterrence.
The economic analysis further involves:
- Fault liability: A precaution can be taken when it is rational. Rational means when the cost is justified. But, precaution is cost-justified when its cost is less than expected injury.
- Strict liability: According to this aspect, the defendant pays the cost of injuries whether or not he takes care of measures to avoid them. The victim cannot shift losses to guilty because he insulated from liability by taking up cost justified as a precaution.
Assumptions:
- The guilty is willing to pay the cost of an accident.
- It is possible to compute the value of accident and its impact.
- The parties in accident can be classified as victim and injuries without conflict.
- The precautionary measures are available.
Anonymous Changed status to publish October 5, 2019
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