Two friends, Sarah and Sally, paid for a boating excursion through the ocean to the Channel Islands. Sarah and Sally did not wear life jackets while on the boat. The boating company providing the excursion did not conduct regular maintenance on their boats. The boat capsized and Sally was killed.

1. Would Sally’s family be able to recover damages under a strict liability rule? Explain your answer.
2. Should a strict liability rule lead to efficient choices for the boating company if it is costly to litigate cases? Explain your answer.
3. Should a negligence rule lead to efficient choices for the boating company if there are errors in the due standard of care set by the court? Explain your answer.

 

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