• • You believe this is due to very bad visibility exiting the lot into the street, which could likely be solved by the placement of two convex mirrors costing approximately $100 each.
• Proposed Precaution
  • A salesman approached you about installing computerized speed limiters on the engine of each company vehicle, limiting the maximum speed of the vehicle.
  • The proposed maximum speed would be 70 mph.
  • Each of these devices costs approximately $500, plus maintenance.
  • In the last two years, the fastest speed of a company vehicle involved in an accident was 54 mph.

Question 1: Foreach of the two proposed precautionsset forth above:

Please explain whether or not the Hand Formula suggests that you should take the proposed precaution.

• Try to make predictions based on the given information.
• However, if you believe more information is necessary to perform the cost benefit calculation, please state what additional information you would like to have.

Question 2: Foreach of the two potential liability problemsset forth above, provideat leastoneoutside-the-box, creativesolution/precautions and explain how the Hand Formula would apply to your proposed solution/precautions.

Answer rating: 100% (QA)

1 The Hand Formula also known as the Hand formula for accident prevention states that the cost of preventing an accident is equal to the cost of the a... View the full answer