Legal liability for accidents determines the circumstances under which injurers must compensate injurers for harm. The effects of liability on incentives to reduce risk, on risk-bearing and insurance (both direct coverage for victims and liability coverage for injurers), and on administrative expenses are considered. Liability is also compared to other methods of controlling harmful activities,...

Recent changes in the US liability regime for oil pollution damage have intensi®ed a policy debate about environmental liability limits. Economic theory suggests that some type of limit may be needed under certain conditions, and that such a limit should be set so that the marginal social bene®t and cost are equal. However, it is unclear how a liability limit may be determined speci®cally for t...

when the victim contributes to the damage, the apportionment of liability is necessary, and the amount of compensation awarded to the victim should be reduced. also, when more than one person injures someone, the liability must be divided between them. but the problem is that how to apportion liability? should the liability be apportioned equally or different? and if the latter is true, how the...

the owner of the aircraft or the enterprise which benefits from its use or operation may have civil liability for injuries to persons or property on the land or water or in the sky. regarding this liability many questions can be raised: who is the responsible person and what are the harmful acts and damages which can be resulted from using aircraft and how can harmonize the property rights of p...

The purpose of this chapter is to compare negligence rules and strict liability rules and to examine the allocative effects resulting from the application of different liability regimes. It first discusses unilateral accidents, while the more complicated bilateral cases follow afterwards. Each section starts with a discussion of the rule of no liability before moving on to various forms of negl...

In this paper we examine the factors that determine how firms manage large, firmspecific risks, in this case, product liability. The risk of being sued for defective products or damage from defective products poses a small probability of a great loss to the firm. Product liability exposure arises from the firm’s choice of products and markets; choices that are fundamental to the firm’s business...

The abundance of flawed software has been identified as the main cause of the poor security of computer networks since major viruses and worms have been exploiting the vulnerabilities of such software. As an incentive mechanism for software security quality improvement, software liability has been intensely discussed among computer scientists, jurists, and policy makers for a long time. In this...

The objective of this work is to analyze the form due diligence responsibility administrators limited liability companies. To exercise established objective, method used will be deduction, being a qualitative nature, as for procedure used, it monographic one and research technique bibliographic one. brings concepts business partnership, specifies company type demonstrates how in Therefore, conc...

We propose a long term portfolio management method which takes into account a liability. Our approach is based on the LQG (Linear, Quadratic cost, Gaussian) control problem framework and then the optimal portfolio strategy hedges the liability by directly tracking a benchmark process which represents the liability. Two numerical results using empirical data published by Japanese organizations a...