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A Jury Ordered McDonald's to Pay $2

Question 29

Multiple Choice

A jury ordered McDonald's to pay $2.7 million to Stella Liebeck, a drive-through customer who burned herself with hot coffee after placing the cup between her legs to remove the top and add cream: she claimed that the coffee was too hot. This tells us the our legal system can:


A) promote efficiency by making property rights secure.
B) promote efficiency by lowering transactions costs.
C) lower costs by creating incentives to litigate frivolous suits.
D) raise costs by creating incentives to litigate frivolous suits.

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