LAW 122 Chapter Notes - Chapter 4: Gas Lighting, Risk Management, Contributory Negligence
25 Feb 2016
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Purpose: to compensate for harmful risky actions conducted carelessly, but to allow for careful risk-taking. Slip and fall on icy sidewalk in front of store. Opinion of either plaintiff or defendant does not matter. Commercial: bare and drunk driver, manufacturer and consumer. Open the floodgates for litigation - stock market loss. Interfere with political decisions - professional regulatory bodies. Hurt a valuable type of relationship - mother and unborn child. Second element - how defendant with duty must act. Reasonable person test - subjective conduct of defendant does not matter. Learned hand test - determination of reasonable standard based on risk management. P - probability of harm if risk occurs. L - magnitude of loss if risk occurs. S - actual money spent on risk management. Reasonable to spend r as long as r p x l. Reasonable not to spend r if r > p x l. Standard higher than a reasonable person in general.
