What activities give rise to strict liability and what defenses are available to strict liability?
Strict liability, or liability without fault, arises from (a) performing abnormally dangerous activities, (b) keeping animals, and (c) selling defective, unreasonably dangerous products. Abnormally dangerous activities are those that (a) create a foreseeable and highly significant risk of physical harm even when reasonable care is exercised by all actors and (b) are not a matter of common usage. Examples include blasting, crop dusting, drilling for or refining oil in populated areas. Trespassing animals or any action by a wild animal generally causes strict liability for the owner. Merchant sellers and manufacturers who sell goods in a defective condition unreasonably dangerous to the user or consumer are held strictly liable. Contributory negligence is not a defense to strict liability. However, comparative negligence is available in some states for some types of strict liability. Express voluntary assumption of risk is also a defense to strict liability.
You might also like to view...
Explain the two primary legal systems used around the world and what these differences have to do with accounting standards
This organization developed a set of criteria that provide management with a basis to evaluate controls not only over financial reporting, but also over the effectiveness and efficiency of operations and compliance with laws and regulations:
A. Committee of Sponsoring Organizations. B. Cohen Commission. C. Financial Accounting Standards Board. D. Foreign Corrupt Practices Corporation.
Managers who must analyze data from 500 hotels to determine when to discount rooms based on occupancy patterns would be placed in which category for managerial decision-making challenges?
A. Managers must apply sophisticated analysis techniques, such as Porter's strategies or forecasting, to make strategic decisions. B. Managers need to analyze large amounts of information. C. Managers must make decisions quickly. D. All of these.
Given the high risk of universal and variable life policies, their market share has steadily declined
Indicate whether the statement is true or false.