Chapter 3

1. Ideally, the threat of tort liability internalizes risk, but excessive liability can result in the reduction or elimination of otherwise beneficial services or products. An area where this is particularly troubling is medical malpractice. Discuss the various proposals for tort reform in the context of this trade-off. If possible, provide empirical evidence to support your argument.

2. Briefly review the history of products liability law in the United States. Discuss the trend in light of the economic theory of tort law.

3. Why might the efficient liability rule for a product-related accident differ depending on whether the victim is a bystander or a purchaser of the product?

4. Should a physician who chances on an injured person be compelled to treat that person? If so, should the victim later be able to sue for malpractice as a result of the treatment?

5. Discuss the pros and cons of instituting a workers’ compensation-type system for medical malpractice claims.