ipl-logo

The Unilateral Accident Model

744 Words3 Pages

The present paper reviews the foundations of the unilateral accident model under a universe of uncertainty where agents are sensitive to “ambiguity”. Initiated by Ronald Coase (1960) and developed by Calabresi (1970), Brown (1973) and especially Shavell (1980), (1982), (1987b), the standard unilateral accident model constitutes the backbone of the economic analysis of tort law. Initially, created by lawyers and judges, tort law legally forces the wrongdoers to compensate their victims’ losses. Law and Economics stream showed that, beyond compensation, the prospect of paying heavy repairs to victims motivates potential tortfeasors to provide the highest prevention level against risk. Hence, the model is simple: a potential wrongdoer performs …show more content…

However, it differs from this well-known literature because, first, uncertainty does not prevent the formation of a socially optimal care level and this is true for strict liability. Second, strict liability and negligence cannot be easily compared but under special conditions. Indeed, enforcing a given liability regime strongly influences the injurers’ behavior. For instance, the institutionalizing negligence involves allocating the Court a higher status than under strict liability because the injurers will refer to the judges’ decisions who “makes” the socially first best care level. Consequently, this issue introduces some strong asymmetry between both regimes. This comes from the nature of the regulator’s utility function. The latter is of Negishi (1960)’s type.. This means that the social utility function aggregates the agents’ preference conversely to the usual models that consider a neutral to risk, dictatorial regulator. Furthermore this one is benevolent and …show more content…

Thus, uncertainty integrates the accident probabilities (Teitelbaum (2007)), but also the agents’ beliefs about the scale of damage. Indeed, a harm extent is generally unknown. Then this one is included in an interval and agents form beliefs about it and ambiguity about the issue (the scope of an accident is fundamental). Furthermore, ambiguous feelings concern both the polluters (as in Teitelbaum (2007), Langlais (2012), Franzoni (2012)), and the victims.
However, this model does not examine in depth the issue of equivalence of a strict liability regime versus negligence by considering the distortions of appreciation between regulator and court, for example, or errors made by the judges. Pursuing such a discussion on this topic would lead us too far (see Sommer (1983), Shavell (1980 b), Polinsky

Show More
Related
643 Words | 3 Pages

The juror’s rules that the company’s attorney failed to establish that the audit firm had intentionally fooled Ultramares. Regarding the negligence charge, the jury ruled in favor of Ultramares and ordered Touche to pay the company damages of $186,000. However, the judge overturned the jury’s ruling explaining his decision, that the jury overlooked the long-standing legal doctrine that only a party in privity could sue and recover damages resulting from a defendant’s negligence. Ultramares’ lawyers quickly appealed the trial judge’s decision.

Read More
1403 Words | 6 Pages

Strict liability strikes a good balance between the regulatory offences and the principle that the morally blameworthy may be punished by having to prove that the prohibited act was done beyond a reasonable doubt. Negligence is presumed, unless the defence establishes a defence of

Read More
1221 Words | 5 Pages

This proves that with two similar cases analyzed , there are not only complexities within the law, but rather inconsistencies as likes cases are being treated differently, and with that, results in a number of differed

Read More
1119 Words | 5 Pages

The justice system is responsible for the error, they should be responsible for the effects of their

Read More
604 Words | 3 Pages

Conseco Grp. Risk Mgmt. Co. v. Ahrens Fin. Sys., 2001 U.S. Dist. LEXIS 2306, at *1. Ultimately, the Court held that in matters involving public concern, whether private or public figure, a plaintiff was required to show actual malice in order to recover presumed or punitive damages.

Read More
473 Words | 2 Pages

In the article “ Can the law make us be decent?” the author state “ “Any person who knows that another is in imminent danger, or has sustained serious physical harm,

Read More
215 Words | 1 Pages

but also Clapp et al.,(2011) state that the road collision straightforwardly rely on upon the drivers stress condition too. In addition Minter, R (2010) claim Now and then, when viewing NASCAR drivers respond off the track contrasted with in the driver 's seat, drivers normally is as lovely and expert as can be outside the vehicle, is on occasion a tiger in the driver 's seat. The author highlight contrasts in drivers off the track and on. Including that the environment the track influences conduct. When you put the power that goes ahead inside the race auto, particularly at a spot like Bristol ... the tolerance level, the dissatisfaction level, is to me just as extraordinary as it 's ever been.

Read More
744 Words | 3 Pages

The James Hardie cases demonstrate that when resolving disputes about procedure in civil penalty proceedings, judges are not always open to ensure that approaches based on older notions of criminal and civil law should be replaced with regulatory innovation. For instance the Court in Morley held that ASIC is required to call all material witnesses to discharge the duty of fairness it owes to defendants in civil penalty proceedings. Although this proposition was overruled by the High Court in ASIC v Hellicar, it showcases the Court’s willingness to raise the bar in resorting to requirements which until then had been the preserve of criminal law. This occurred because the Court in Morley was concerned that a public authority like ASIC responsible for enforcement of the corporations legislation and acting in public interest, had considerable powers unlike an ordinary civil

Read More
220 Words | 1 Pages

The purposes of punishment are reformation, restraint, retribution, and deterrence. The injured party then attempts to collect damages by trying the civil case of assault and battery. In some cases, even a defendant who is not guilty of a criminal charge can be found liable for damages in a subsequent civil suit. An example as a pure legal issue, forcing treatment on an unwilling person is no

Read More
1516 Words | 7 Pages

The legal definition of a tort is a civil wrong or wrongful act, whether intentional or accidental, from which injury occurs to another person. Torts include all negligence cases as well as intentional wrongs which resulted in harm and are the most heard legal proceedings. Being that torts are various and plenty it must also be stated that a tort can be subjective depending upon the parties involved. Not only can a tort be subjective to the parties involved but also the litigation involved with defining that tort by a court of law is also subject to prejudice by those who may or may not see it as a wrongful act. While tort law may be a valid means of regulation in jurisdictions with established and accessible bodies of common law,

Read More
1723 Words | 7 Pages

Judicial corruption refers to corruption related improper of judges, through receiving or giving bribes, not proper sentencing of convicted criminals, bias in the hearing and judgement of arguments and other such misconduct, any act through which workers in the justice system are negatively influenced that affects the impartiality of judicial proceedings for the purpose of obtaining an unlawful benefit for themselves or other persons. There are two types of such negative influences upon justice: The first incorrect influences affecting the independence of justice as a system or the independence of judges as individuals stress factors acting on justice. The analysis of safety measure that fight such reasons and that anticipate to protect the functional independence of the system and the individual independence of the judge, for example life tenure, presence of a judicial council. Here we may embrace, but are not restricted to, political involvement in the

Read More
206 Words | 1 Pages

What I found to be the most interesting from the reading that most of all car crashes are caused by distracted driving. Most distracted driving accidents are caused by teenagers or people who barley started driving. Distracted driving is caused when either the person who is operating the vehicle is paying attention to something that is going on inside the car or they are taking their attention to an object outside of the vehicle and not paying attention to the road. Over 5,000 distracted driving cases happen each year in the state of Utah. Nearly 3,000 of those cases result in injured persons and 28 result in death.

Read More
1825 Words | 8 Pages

With respect to the civil liability, Fuller has a few reservations as to such laws. What must be contemplated is the objective of the retrospective law. For example, the imposing of tax gains in which the object is to raise revenue and not control past conduct, thus issue of retroactivity cannot be used as ground to invalidate such

Read More
102 Words | 1 Pages

Maximum Credible Accident Analysis (MCA Analysis) is one of the methodologies evolved to identify worst credible accident with maximum damage distance, which is still believed to be probable. The analysis does not include quantification of probability. The following is an attempt in that direction. Hazardous substance may be released as a result of failures of catastrophes, causing damage to the surrounding area.

Read More
888 Words | 4 Pages

Dirt Pots Cook Food Advantages This kind of warmth is extraordinary to mud cooking and conveys flavors and flavoring significantly more profound into the sustenance, giving it that additional exceptional touch in flavor. An additional favorable position is that this element likewise helps you lessen the utilization of salt, and is accordingly is perfect for low-sodium diets. This unrivaled type of warmth additionally helps in cooking vegetables and meat uniformly. Unevenly cooked sustenance will now be a relic of days gone by.

Read More

More about The Unilateral Accident Model

Related Topics

Open Document