The standard of strict liability is considered by some to assign too much of the cost of injuries to firms and too little to consumers, distorting the incentives for care.

Question

Quizplus · Accepted Answer

The standard of strict liability holds firms and manufacturers responsible for injuries caused by their products regardless of fault or negligence. This can lead to firms facing high costs for injuries even if they took reasonable care in the design and production of their product. This may lead to some arguing that the standard assigns too much of the cost of injuries to firms and not enough to consumers who may have been negligent in the use of the product or failed to take appropriate precautions. Consequently, this may distort incentives for care and safety on both sides.

The Standard of Strict Liability Is Considered by Some to Assign