Evaluate Th Concept of Strict Liability

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July 4, 2012

BAM530 Business Ethics

Unit 3

Question #3: Evaluate the concept of strict liability.

Strict liability is the legal responsibility levied on a person or company for certain damages or injury even if they were not at fault. Strict liability can even apply even if the person or company did not physically commit any act to cause the actual injury. Corporations can be held liable for the defects of their product even if they did not know about the problem or harm it could cause. Corporations could not only be held responsible for actual damages but for punitive damages also. Punitive damages can end up costing the corporation three times the damages of actual damages.

Strict liability is considered a legal doctrine not a moral one. In the text they discuss whether strict liability is fair to corporations. Those that argue in defense of strict liability have three basic parts. The first is the doctrine of deep pockets. This considers who is the best to absorb the cost of injuries the company or the individual and they feel the corporation has the means and the money. They feel the company is in the best position to insure itself against a product malfunction or injury it causes by purchasing insurance or self-insure.

The second part is that since companies know that they will be liable for faulty products it makes them want to make their products safer. It makes corporations want to test their products carefully in order to make sure all possible defects are covered. They are in the best position to do this and this doctrine tends to produce safer products.

July 4, 2012

BAM530 Business Ethics

Unit 3

The third is the manufactures are in the best position to want to fix defects in their products when problems or injury occurs. This law makes corporations want to fix or recall products sooner and corporations with the doctrine of strict liability corporations will know about their...
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