Consider a potential accident between the driver of a car and a train at a railroad...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider a potential accident between the driver of a car and a train at a railroad crossing where the railroad is the injurer and the driver is the victim. The railroad can take precaution by slowing down its trains and by properly maintaining and inspecting its equipment at the crossing. The driver can take precaution by stopping and looking/listening for a train before proceeding to cross the tracks. The costs of these precautions and resulting damages are in the table below: RR: no care, Car: no care RR: care, Car: no care RR: no care, Car: care RR: care, Car: care RR Cost 0 3000 0 3000 Car Cost 0 0 1000 1000 Total Damages 10000 8000 7000 5000 a. What will the outcome be if the liability rule is strict liability? Explain. b. Is strict liability efficient? Explain why or suggest a liability rule that will result in an efficient outcome. Consider a potential accident between the driver of a car and a train at a railroad crossing where the railroad is the injurer and the driver is the victim. The railroad can take precaution by slowing down its trains and by properly maintaining and inspecting its equipment at the crossing. The driver can take precaution by stopping and looking/listening for a train before proceeding to cross the tracks. The costs of these precautions and resulting damages are in the table below: RR: no care, Car: no care RR: care, Car: no care RR: no care, Car: care RR: care, Car: care RR Cost 0 3000 0 3000 Car Cost 0 0 1000 1000 Total Damages 10000 8000 7000 5000 a. What will the outcome be if the liability rule is strict liability? Explain. b. Is strict liability efficient? Explain why or suggest a liability rule that will result in an efficient outcome.
Expert Answer:
Answer rating: 100% (QA)
a On the basis of the strict liability rule the particular party of entity that would be held responsible for the fault or injury in the accident In t... View the full answer
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
Posted Date:
Students also viewed these accounting questions
-
2.2. Sketch a confecture about. Prape of fad use it to make a the power I fow, lim fox, I'm foxs and time fors 26. foxs = 1-x -4 : a = 1
-
On January 2, Year 1, the Lyndhurst Company Inc. a privately-held company, issued $1,000,000, five-year, 10% bonds, dated January 2, Year 1. The bonds provided for semiannual interest payments to be...
-
On January 2, Year 1, Saxe Company purchased 20% of Lex Corporation's common stock for $150,000. Saxe Corporation intends to hold the stock indefinitely. This investment did not give Saxe the ability...
-
What does this code print (unless it produces an error)? = plane "A passengers" plane [2] = "m" print (plane)
-
John Tonelli was an exceptionally talented young hockey player who, in 1973 at the age of 16, entered into a two-year contract with the Toronto Marlboro Major Junior A hockey club, a team in the...
-
Consider vases of various shapes being filled with water at a constant rate. Cylindrical vase Spherical vase a. (3 points) For each vase, sketch a graph of time vs. volume as it is being filled. b....
-
Under what conciitions might an independent accountant report on the application of accounting principles?
-
During the first month of operations, ABC Company incurred the following costs in ordering and receiving merchandise for resale. No inventory was sold. List price, $100, 200 units purchased Volume...
-
An airplane taking off increases its velocity from 10.0m/s to 100.0m/s in 2.0 seconds. What is the acceleration? Two cars, A and B, are 400 meters apart. Car A travels due east at 30 meters per...
-
Imagine that you have extracted an unmyelinated neuron and have placed it in a sterile petri dish filled with a solution mimicking its natural extracellular envirnoment. you artificially stimulate...
-
The statement of cash flows will not provide insight into a. why dividends were not increased. b. whether cash flow is greater than net income. c. the exact proceeds of a future bond issue. d. how...
-
Mrs. Davenport is a vivacious septuagenarian living in Whispering Willows Continuing Care Retirement Community. An attractive lady, she spends her days with a large group of friends, playing cards...
-
Compute the cross rate for the following quotes. a. Compute the C$/ using the following: C$/$ = 1.5613, $/ = 1.0008. b. Compute the / using the following: /$ = 124.84, $/ = 1.5720. c. Compute the...
-
Greenville Community Hospital (GCH) was located in an affluent suburb of a metropolitan area. A large psychiatric hospital was geographically adjacent. In fact, the two hospitals shared facilities,...
-
Dr. Griffith, Dr. Williams called and asked if you would join him on the golf course this afternoon, Sandra the office manager said to Dr.Griffith.Of course Ill be there, I may have to cancel my...
-
The following article describes key technology areas that have been identified to modernize the transmission and distribution of electric power [14]. Included in this article are discussions of the...
-
Esther pays $ 4 6 7 per month for 6 years for a car. She made a down paymnent of $ 3 , 7 0 0 . If the loan costs 7 . 1 % per year compounded monthly , what was the cash price of the car ?
-
Revol Industries manufactures plastic bottles for the food industry. On average, Revol pays $76 per ton for its plastics. Revol's waste-disposal company has increased its waste-disposal charge to $57...
-
Stewart Corporation is reviewing an investment proposal. The initial cost and related data for each year of the projects life are presented in the schedule below. Stewart assumes that the cash flows...
-
Wheeler Corporation produces and sells special eyeglass straps for sporting enthusiasts. In 2009, the company budgeted for production and sales of 1,200 straps. However, the company produced and sold...
-
Avery, Inc., is a wholesale distributor supplying a wide range of moderately priced sporting equipment to large chain stores. About 60 percent of Averys products are purchased from other companies,...
-
The W10 \(\times 15\) cantilever beam is made of A-36 steel and is subjected to the loading shown. Determine the slope and displacement at its end \(B\). A 3 kip/ft -6 ft -6 ft - B
-
The W14 \(\times 30\) cantilever beam is made of A-36 steel and is subjected to the loading shown. Determine the slope and displacement at its end \(B\). 2 kip/ft A 6 ft 6 ft. B 30 kip-ft
-
The W14 \(\times 43\) simply supported beam is made of A992 steel and is subjected to the loading shown. Determine the slope at \(A\) and \(B\). 60 kip ft A 12 ft- C 3 kip/ft 12 ft B
Study smarter with the SolutionInn App