Law, Business and Society 11th Edition by Tony McAdams

Exercise 4

At this writing in 2013, a Florida state senate committee has passed new rules for parasailing, a largely unregulated commercial recreational activity. The new rules, if fully approved, would require insurance for operators, an onboard observer, and allow operation only when winds do not exceed 20 miles per hour.
In 2012, a Connecticut woman dropped from her harness to her death while parasailing near Pompano Beach, Florida. Such deaths are unusual with several dozen having been estimated worldwide in the past 30 years, but Florida has seen four in the past two years.
a. How would you argue that parasailing deaths often constitute a market failure
b. Would you vote for a parasailing rule, or would you leave parasailing safety to the market Explain.