Which of the following have been used as public policy justifications to support the denial of recovery for pure economic loss?
Please select all that apply.

Question

Quizplus · Accepted Answer

These are all commonly cited justifications for denying recovery for pure economic loss in public policy. Allowing recovery for these types of losses could potentially impose crushing liability on defendants, as well as lead to indeterminate liability and flood the legal system with minor claims. The risk of economic loss is generally seen as better shouldered collectively by society, rather than individual defendants. It is also argued that people and businesses can be expected to insure themselves against foreseeable economic losses, and that contract law provides a more appropriate avenue for claiming economic losses. Additionally, allowing recovery could negatively affect the efficiency of the market.

Which of the Following Have Been Used as Public Policy