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The Politics of the Products Liability

Buy Custom The Politics of the Products Liability Essay

The products liability system is developed in order to increase the efficiency of the products as the consumer and the seller stand in the contractual relationships. Since the 1980s, the liability standards have undergone the revolutionary changes such as the Consumer Protection Act of 1987. Nevertheless, the insurance crisis has produced many reforms that limit seller liability. Moreover, a number of the products liability doctrines have not become a subject of the economic analysis.

The products liability is the body of law that regulates the apportionment of losses caused by the use of the product. It has become one of the most significant questions at issue in the civil liability. On the one hand, the courts usually pay little attention to the efficiency in the cases of the products liability. On the other hand, the legal decision-makers become more worried about the economic results of the liability rules.

Nowadays, efficiency reflections considerably affect the law making of the products liability as the Third Restatement of Torts: Products Liability represents it. The emphasis on efficiency is the justified act. The sellers must take account of their liability costs in the product price. At the same time, the consumers should receive the benefits of tort liability by paying for it. Thus, the efficient liability rules govern the net benefit of the seller liability.

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The liability claims cause concern in the operators. Public and Products Liability makes one’s business legally liable for the property damage and the personal injury to the third parties as a consequence of connection with this business. Hence, the product liability leads to the empowerment of the consumers.

The products liability can only be a contract law application while studying the products liability through the economic viewpoint. As a consequence, the courts should just impose the contractual apportionments of the product risk in order to guarantee the efficient outcomes.

In conclusion, the detailed economic analysis of the products liability doctrines is necessary in order to develop this branch of jurisprudence. Commerce should create efficient business models for the production possibilities and the maximization of consumer’s welfare as well.

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