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Which of the Following Is a Demerit of the Liability

Question 45

Multiple Choice

Which of the following is a demerit of the liability system?


A) The liability system is costly to operate.
B) Punitive damages awards are largely governed by strict constitutional guidelines.
C) The insurance system prohibits firms to insure against the risks of damage awards.
D) The standard of strict liability assigns too much of the cost of injuries to consumers and too little to firms, distorting the incentives for care.

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