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Negligence is a legal rule alternative to strict liability. According to this rule, if a firm has caused damage, the court establishes (with 100% accuracy), whether the firm had taken precautionary measures, and if so no legal sanctions woul;"lensue; otherwise the firm would be found negligent and a fine would be imposed Which of the following statements are true? (Choose any number of options) Select one or more a. To produce 1st best, negligence rule requires higher fines than strict liability b. Strict liability rule is easier to administer than negligence

Вопрос

Negligence is a legal rule alternative to strict liability. According to this rule, if a firm has caused damage, the court establishes (with 100% accuracy), whether the firm had taken precautionary measures, and if so no legal sanctions woul;"lensue; otherwise the firm would be found negligent and a fine would be imposed Which of the following statements are true? (Choose any number of options) Select one or more a. To produce 1st best, negligence rule requires higher fines than strict liability b. Strict liability rule is easier to administer than negligence

Negligence is a legal rule alternative to strict liability. According to this rule, if a firm has caused damage, the court establishes (with 100% accuracy), whether the firm had taken precautionary measures, and if so no legal sanctions woul;"lensue; otherwise the firm would be found negligent and a fine would be imposed Which of the following statements are true? (Choose any number of options) Select one or more a. To produce 1st best, negligence rule requires higher fines than strict liability b. Strict liability rule is easier to administer than negligence

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The correct answer is:<br /><br />b. Strict liability rule is easier to administer than negligence.<br /><br />Explanation:<br />- The strict liability rule holds firms liable for damages regardless of whether they took precautionary measures. This simplifies the administrative process for courts as they do not need to determine the firm's level of care or diligence.<br />- The negligence rule, on the other hand, requires courts to assess whether the firm exercised reasonable care, which can be a more complex and time-consuming process.
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