What levels of precaution would rule of strict liability

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Reference no: EM132262578

Consider the following setting of bilateral precaution. Bicyclists who ride at night can reduce the risk of getting hit by a car by wearing reflective vests. Drivers can reduce the risk of hitting a bicyclist by installing HID (High Intensity Discharge) headlights, which are brighter than normal headlights. Imagine there’s only one driver and one bicyclist, and the likelihood of an accident is as follows:

Injurer Precaution = Normal Headlights, Victim Precaution = No Vest : probability 8%

Injurer Precaution = Normal Headlights, Victim Precaution = Vest : probability 5%

Injurer Precaution = HID Headlights, Victim Precaution = No Vest : probability 3%

Injurer Precaution = HID Headlights, Victim Precaution = Vest : probability 1%

The damage done by an accident is $1,000, and compensation is perfect. Reflective vests cost $15, and HID bulbs cost $30. There is no insurance – drivers bear their own liability costs.

(e) What levels of precaution would a rule of simple negligence lead to?

(f) What levels of precaution would a rule of strict liability with a defense of contributory negligence lead to?

(g) Who bears the residual risk of accidents (pays the cost of those accidents that still occur) under simple negligence? What about under strict liability with a defense of contributory negligence?

(h) What can you say about the levels of driver and bicyclist activity under these two rules?

Reference no: EM132262578

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