01:220:395 Lecture Notes - Lecture 17: Medical Malpractice, Vicarious Liability, Punitive Damages
2 May 2016
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Document Summary
Administrators have the power to order potential injurers to correct a hazard before an accident occurs. Courts have the power to order injurers to compensate victims after an accident occurs. Regulations is ex ante enforcement by administrators. Liability is ex post enforcement by the victim. Administrators acquire technical knowledge needed to evaluate the safety of specialized industries. Courts, therefore, use safety regulations as a standard in determining liability. Insurance transfers risk from the insured party to the insurer. When potential damages to the tort victims exceed the defendant"s net worth firms may claim bankruptcy. Firms sometimes place risky behavior policies in a subsidiary company to avoid bankruptcy. Transaction cost evaluations affect the behavior of tort victims. One person may be responsible for the torts committed by another. Damages given to the plaintiff to punish the defendant. Behavior by the defendant that is: malicious, oppressive, gross, willful, wanton, fraudulent. There is no rule regarding compensation of punitive damages.
